Sales Tax ACT 2015

BALOCHISTAN PROVINCIAL ASSEMBLY SECRETARIAT
THE BALOCHISTAN SALES TAX ON SERVICES BILL NO.16 OF 2015
A
Bill
Preamble
to provide for the levy of a tax on services provided,

rendered, initiated, received, originated, executed or
consumed in Balochistan.
Where it is expedient to provide for the levy of a tax on
services provided, rendered, initiated, originated,
executed, received or consumed in Balochistan and to
deal with ancillary matters.
It is hereby enacted as follows: CHAPTER I
PRELIMINARY
Short Title, Extent and

Commencement
1. (1) This Act shall be called the Balochistan Sales Tax

on Services Act 2015.
(2) It extends to the whole of Balochistan except its
Tribal Areas.
(3) This Act shall come into force on and from 1st day of
July, 2015.
(4) Notwithstanding sub-section (3), the Government
may, by notification in the official Gazette, specify
services or class or classes of services in respect of which
tax shall be collected and paid with effect from the date
subsequent to and different from the date of the
commencement of this Act.
Definitions
2. In this Act unless there is anything repugnant in the

subject or context:
(1) Act means the Balochistan Sales Tax on Services
Act, 2015.
(2) Appellate Tribunal means the Appellate Tribunal
established under law and notified by the Government
as the Appellate Tribunal for purposes of the Act;
(3) Arrears, in relation to a person, shall mean, on any
day, the tax due and payable by the person under the
Act or the rules before that day but which has not yet
been paid;
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(4) Assistant Commissioner means a person appointed

as an Assistant Commissioner of the Authority;
(5) Associates or associated persons refer to: (a) Two persons, where the relationship between
them is such that one may reasonably be

expected to act in accordance with the intentions
of the other, or both persons may reasonably be
expected to act in accordance with intentions of a
third person but two persons shall not be
associates solely by reason of the fact that one
person is an employee of the other or both
persons shall not be associates solely by reason
of the fact that one person is an employee of the
other or both persons are employees of a third
person;
(b) without prejudice to the generality of paragraph
(a) and subject to paragraph (c), the following

persons shall always be treated as associates:(i) An individual and a relative of that
individual;
(ii) Members of an association of persons;
(iii) A member of an association of persons and
the association, where members, either alone or
together with an associate or associates under
another application of this section controls fifty
percent or more of the rights to income or
capital of the association;
(iv) A shareholder in a company and the
company, where the shareholder, either alone
or together with an associate or associates
under another application of this section,
controls either directly or through one or more
interposed persons:(a) fifty percent or more of the voting power in the
company;
(b) fifty percent or more of the rights to dividends;
or
(c) fifty percent or more of the rights to capital; and
(v) two companies, where a person, either alone
or together with an associate or associates
under another application of this section,
controls either directly or through one or more
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interposed persons:a. fifty percent or more of the voting power

in both companies;
b. fifty percent or more of the rights to
dividends in both companies;
c. fifty percent or more of the rights to
capital in both companies; and
d. two persons shall not be associates under
Serial Number (i) or (ii) of clause (b)
where the Commissioner is satisfied that
neither person may reasonably be
expected to act in accordance with the
intentions of the other.
Explanation
The expression relative in relation to an individual
means:(i) An ancestor, a descendant of any of the grandparents,
or an adopted child of the individual or of a spouse of the
individual; or
(ii) A spouse of the individual or of any person specified
at Serial Number (i);
(6) Association of persons includes a firm; any artificial
or juridical person and body of persons formed under a
foreign law, but does not include a company;
(7) Authority means Balochistan Revenue Authority
established under the Balochistan Revenue Authority
Act, 2015;
(8) Banking company means a banking company as
defined in the Banking Companies Ordinance, 1962
(LVII of 1962) and includes any body corporate, which
transacts the business of banking in Balochistan;
(9) Commissioner means a person appointed as
Commissioner of the Authority;
(10) Commissioner (Appeals) means a person
appointed as Commissioner (Appeals) of the Authority;
(11) Common taxpayer identification number means
the registration number or any other number or
identification code allocated to a registered person;
(12) Company means:(a) a company as defined in the Companies
Ordinance, 1984 (XLVII of 1984);
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(b) a body corporate formed by or under any law;

(c) a modarba and any other Islamic financial
institution;
(d) a body incorporated outside Pakistan;
(e) a trust, a co-operative society or a finance society
or any other society established or constituted by

or under any law; or
(f) a foreign association, whether incorporated or
not, which the Authority has, by general or
special order, declared to be a company for
purposes of the Act;
(13) Computerized system means any comprehensive
information technology system, including its
development, up-gradation or updation, to be used by
the Authority or any other office as may be notified by
the Authority, for carrying out the purposes of the Act;
(14) Default surcharge means the default surcharge
levied under the Act;
(15) Defaulter means a person and, in the case of
company or firm, every Director of the company or
partner of the firm and includes guarantors or
successors, who fail to pay the arrears of tax under the
Act and the rules;
(16) Deputy Commissioner means a person appointed
as a Deputy Commissioner of the Authority;
(17) Document includes any electronic data, computer
programmes, computer tapes, computer disks,
microfilms or any other medium or mode for the storage
or conveyance of such data;
(18) Due date in relation to the furnishing of a return
under Chapter VI means the 15th day of the month
following the end of the tax period, or such other date as
the Authority may, by notification in the official
Gazette, specify;
(19) Economic activity shall have the meaning given
to it in section 6;
(20) E-intermediary means a person appointed as eintermediary under the Act;
(21) Exempt service means a service which is exempt
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from the tax under section 12;

(22) FBR means the Federal Board of Revenue
established under the Federal Board of Revenue Act,
2007;
(23) Financial year means the period from 1st July of a
year to 30th June of the following year;
(24) Firm means the relation between persons who
have agreed to share the profits of a business carried on
by all or any of them acting for all;
(25) Goods include every kind of movable property
other than actionable claims, money, stocks, shares and
securities but does not include a service defined under
the Act;
(26) Government means Government of Balochistan;
(27) Inter-bank rate means the Karachi inter-bank
offered rate prevalent on the first day of each quarter of
a financial year;
(28) Officer of the Authority means any officer of the
Authority;
(29) Open market price shall have the meaning as
given to it in section 8;
(a) (30) Person means:(b) an individual;
(c) a company;
(d) Federal Government;
(e) a Provincial Government;
(f) a local authority or local government; or
(g) a foreign government, a political subdivision of a
foreign government, or public international
organization;
Explanation
The use of the word he in the Act shall be taken to
refer to any or all mentioned from (a) to (f) as required
in the context of the relevant provision;
(31) Place of business means that a person:(a) Owns, rents, shares or in any other manner
occupies a space in Balochistan from where he
carries on an economic activity whether wholly
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or partially; or
(b) Carries on an economic activity whether wholly
or partially through any other person such as an

agent, associate, franchise, branch, office, or
otherwise in Balochistan but dose not includes a
liaison office;
(32) Prescribed means prescribed by the rules;
(33) Registration number means the number allocated
to a registered person for purposes of the Act;
(34) Registered person means a person who is
registered or is liable to be registered under the Act but
the person liable to be registered and has not registered
shall not be entitled to any benefit available to a
registered person under any of the provisions of the Act
or the rules;
(35) Return means any return required to be furnished
under Chapter VI of the Act;
(36) Resident means:(a) An individual who, in a financial year, has:(i) a place of business, whole or part
thereof, in Balochistan in any mode, style
or manner; or
(ii) his permanent address, as listed in the
individuals national identity card, in
Balochistan; or
(iii) a permanent representative to act on
his behalf or to provide service on his
behalf in Balochistan; or
(b) An association of persons or a company,
which, in a financial year, has:(i) its registered office in Balochistan
(ii) its place of business, whole or part
thereof, in Balochistan in any mode, style
or manner; or
(iii) a permanent representative to act on
its behalf or to provide service on its
behalf in Balochistan; or
(iv) the control or management of the
affairs of the association of persons is
situated in Balochistan at any time during
the financial year;
(37) Rules means the rules made under the
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Balochistan Revenue Authority Act;

(38) Schedule means a Schedule appended to the
Balochistan Revenue Authority Act;
(39) Service or services means anything, which is
not goods or providing of which is not a supply of
goods and shall include but not limited to the services
listed in first Schedule;
Explanation
A service shall remain and continue to be treated as
service regardless whether or not rendering thereof
involves any use, supply or consumption of any goods
either as an essential or as an incidental aspect of such
rendering;
(40) Short-paid means where a registered person pays
an amount of tax less than the tax due owing to
miscalculation or incorrect assessment of the tax
amount due for a tax period;
(41) Similar service means any other service, which is
the same as, or closely resembles with, the other service
in character, quality, quantity, functionality, materials,
or reputation;
(42) Special Judge: means a Special Judge appointed
under section 42;
(43) Tax means and includes:(a) The tax, additional tax, or default surcharge
levied under the Act;
(b) A fine penalty or fee imposed or charged under
the Act; and
(c) Any other sum payable or recoverable under the
Act or rules;
(44) Tax fraud means knowingly, dishonestly or
fraudulently and without any lawful excuse:(a) doing of any act or causing to do any act; or
(b) omitting to take any action or causing the
omission of any action including providing of
taxable services without being registered under
the Act; or
(c) falsifying or causing falsification of tax invoices
or other tax documents or records; or
(d) acting in contravention of the duties or
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obligations imposed under the Act or rules or

instructions issued thereunder with the
intention of understating or suppressing the tax
liability or underpaying the tax liability;
(45)tax period means a period of one month or such
other period as the Authority may, by notification in
the official Gazette, specify;
(46) Taxable service shall have the meaning as given
to it in section 3; and
Taxable Service
(47) Value of a taxable service shall have the meaning

as given to it in section 7.
3. (1) Subject to such exclusion as mentioned in Second
Schedule, a taxable service is a service listed in Second
Schedule, which is provided by a person from his office
or place of business in Balochistan in the course of an
economic activity, including the commencement or
termination of the activity.
Explanation
(1) This sub-section deals with services provided by a
person regardless whether such services are provided to
a resident person or a non-resident person.
(2) if a service listed in Second Schedule is provided to a
resident person by a non-resident person in the course
of an economic activity, including the commencement or
termination of the activity, it shall be treated as a
taxable service.
Explanation
This sub-section deals with services provided by a nonresident person to a resident person whether or not the
end consumers, if any, of such services are identifiable
for purposes of this Act or the rules.
(3) For purposes of sub-section (2), where a person has a
registered office or plan of business in Balochistan and
another outside Balochistan, the registered office or
place of business in Balochistan and that outside
Balochistan shall be treated as separate legal persons,
(4) The Authority may, with prior approval of the
Government, by notification in the official Gazette,
prescribe rules for determining the conditions under
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which a particular service or class of service shall be

considered to have been provided by a person from his
registered office or place of business in Balochistan.
(5) For purposes of this Act and the rules, providing of
service shall, where the context requires, include
rendering, supply, initiation, origination, execution,
reception, consumption or termination of service
whether in whole or in part.
Application of Principles of
Origin and Reverse Charge
in Certain Situations
4. (1) Where a person is providing taxable services in

Province other than Balochistan but the recipient of
such services is resident of Balochistan or is otherwise
availing such services in Balochistan and has charged
tax accordingly, the person providing such services shall
pay the amount of tax so charged to the Government.
(2) Where the recipient of a taxable service is person
registered under the Act, he shall deduct the whole
amount of tax in respect of the service received and pay
the same to the Government.
(3) Where a person is providing taxable services in more
than one provinces or territory in Pakistan including
Balochistan, such person shall be liable to pay tax to the
Government to the extent the tax is charged from a
person resident in Balochistan or from a person, who is
otherwise availing such services in Balochistan,
(4) Where rendering of a taxable service originates from
Balochistan but terminates outside Pakistan, such
person shall be required to pay tax on such service to
the Government.
(5) Where a taxable service originates from outside
Pakistan but is received or terminates in Balochistan,
the recipient of such service shall be liable to pay the tax
to the Government.
(6) The persons who are required to pay the tax to the
Government in terms of sub-sections (1), (2), (3), (4),
and (5) shall be liable to registration for purposes of this
Act and the rules.
(7) All questions or disputes relating to the application
of the principle of origin given in this section shall be
resolved in terms of the already recorded understanding
between the Federal Government and the Provincial
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Governments on the implementation of reformed

General Sales Tax provided that pendency of any such
question or dispute shall not absolve the concerned
person from his obligation to deposit the tax.
(8) The provisions of this section shall apply
notwithstanding any other provision of this Act or the
rules and the Government may specify special procedure
to regulate the provisions of this section.
Amendment in Second
Schedule
5. (1) The Government may, by notification in the

official Gazette, make an amendment in Second Schedule
by modifying, adding or deleting any entry or entries
with reference to the classification, if any, description of
any service or class of service and the rate or rates of tax
chargeable on any service or class of services not
exceeding the minimum rate prescribed in Second
Schedule.
(2) A notification issued under sub-section (1) shall be
effective from such date as may be specified in the
notification by such date shall not be prior to the date on
which the notification is published in the official
Gazette.
(3) The Government shall at the time of presenting the
Annual Budget Statement for the next financial year, lay
before the Provincial Assembly of Balochistan all the
notifications relating to the amendments in the Second
Schedule during the current financial year.
Economic Activity
6. (1) An economic activity means any activity carried

on whether continuously, regularly or otherwise by a
person that involves or is intended to involve the
provision of services to another person and includes:(a) an activity carried on in the form of a business,
including a profession, calling, trade or
undertaking of any kind, whether or not the
activity is undertaken for any consideration or
profit;
(b) the supply of movable property by way of lease,
license or such similar arrangement; and
(c) a one-time transaction or concern in the nature
of a business or trade.
(2) Anything done or undertaken during the
commencement or termination of an economic activity
shall be construed as part of the economic activity.
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(3) An economic activity does not include:(a) the activities of an employee providing services
in that capacity to an employee; or
(b) a private recreational pursuit or hobby of an
individual.
Value of a Taxable Service
7. (1) The value of a taxable service is the consideration

(by whatever name called such as charges or price ) in
money including all the Federal and the Provincial
duties, taxes or charges, if any, which the person
providing a service receives from the recipient of the
service but does not include the amount of the tax.
(2) In case the consideration for a service is in kind or is
partly in kind and partly in money, the value of the
service shall mean the open market price of the service
as determined under section 8 excluding the amount if
the tax.
(3) In case the person who provides the service and the
recipient of the service are lower associated persons and
the service is supplied for no consideration or for a
consideration which is lower than the price at which the
person provides the service to other persons who are not
associated persons, the value of the service shall mean
the price at which the service is provided to such other
persons but does not include the tax.
(4) In case a person provides a service for no
consideration or for a consideration, which is lower than
the price at which such a service is provided by such
person, the value of the service shall mean the open
market price for such a service.
(5) In case of trade discounts, the value of the service
shall mean the discounted price, excluding the amount
of the tax, provided the invoice shows that the
discounted price and the related tax and the discount
allowed is in conformity with customary business
practice.
(6) In case there is reason to believe that the value of a
service has not been correctly declared in the invoice or
for any special nature of transaction it is difficult to
ascertain the value of a service, the value of the service
shall be the open market price.
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(7) Notwithstanding anything in sub-sections (1) to (6),

where the Authority deems it necessary, it may, by
notification in the official Gazette, fix the value of any
service or class of or similar types of services but if the
value at which the service is provided is higher than the
value fixed by the Authority, the value of the service
shall, unless otherwise directed by the Authority, be the
value at which the service is provided.
Explanation
For the purpose of this section, the value of the utilities
or facilities, if any, ancillary to providing of taxable
services shall be included in the value of such services.
(8) The Authority may, by notification in the official
Gazette issue valuation rule for any service or class of
services for the purposes of assessment or determination
and payment of tax under this Act and prescribe
threshold, parameters, standards, methods, formula,
criteria or bases for the determination of value of any
taxable service or class of taxable services and the
assessment of the tax on any service or class of services.
Open market price
8. (1) The open market price of a service is:(a) the price, the service would fetch in an open
market transaction freely entered into between
persons who are not associated persons; or
(b) if it is not possible to determine an amount
under paragraph (1), the price, a similar service
would fetch in an open market transaction
freely made between persons who are not
associated persons, adjusted to take account of
the differences between the similar service and
actual service;
(c) determined on the basis of the market
conditions prevailing at the time and place at
which the service is provided.
(2) If the open market price of a service cannot be
determined under sub-section (1), it may be determined
by using any method or formula specified by the
Authority for calculating an objective approximation of
the price, the service would fetch in an open market
transaction freely made between persons who are not
associates.
Provision of Services Over a
9. (1) Where a service is provided over a period of time

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Period of Time
and payment for the same is made on a periodic basis,

the service shall be treated as comprising two or more
separate and distinct services each corresponding to the
part of the service to which each separate part of the
consideration relates.
ILLUSTRATIONS
(a) Where services are provided for a two years period
and payment is made on a semi-annual basis, the
provision of services for each six months period
constitutes a separate service
(b) Where an insurance company provides as insurance
policy over a five years period and receives a
premium on an annual basis, each premium relates
to a separate service.
(c) Note: The above illustrations are merely
explanatory and shall not be construed as
conclusive in any manner whatsoever.
(2) This section does not apply to services for which
payment is made on installments basis.
CHAPTER II
SCOPE OF TAX
Scope of Tax and Allied

Matters
10. (1) Subject to the provisions of this Act and the

rules, there shall be charged, levied collected and paid
the tax on the value of a taxable service at the rate or
rates specified in the Second Schedule.
(2) The Government may, on the recommendation of
the Authority and subject to such conditions and
restrictions as the Government may impose, by
notification in the official Gazette, declare that in respect
of any taxable service provided by a registered person or
a class of registered persons, the tax shall be charged,
levied and collected at such higher, lower, fixed or
specific rate or rates as may be specified in the said
notification.
(3) Notwithstanding other provisions of this Act, the
Authority may, with the prior approval of the
Government and by notification in the official Gazette
and subject to the conditions, restrictions, limitations or
otherwise, fix the limit or threshold of annual turnover
of any service or class of services provided by any
person or class of persons below which such person or
class of person shall be exempt from payment of tax
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under the Act.

(4) A person required to pay tax under this Act shall be
entitled to deduct from the payable amount, the amount
of tax already paid by him on the receipt of taxable
services used exclusively in connection with taxable
services provided by such person subject to the
condition that he holds a true and valid tax invoice not
older than six tax periods, showing the amount of tax
earlier charged and paid under the Act on the services so
received but the Authority may, by notification in the
official Gazette, disallow or restrict such deduction in
case of any service or services as it may deem
appropriate.
Person Liable to Pay Tax
11. (1) Where a service is taxable by virtue of subsection (1) of section 3, the liability to pay the tax shall
be on the registered person providing the service.
(2) Where a service is taxable by virtue of sub-section
(2) of section 3, the liability to pay the tax shall be on
the person receiving the service.
Gazette, specify the service or Services in respect of
which the liability to pay tax shall be on any person,
other than the person providing the taxable service, or
the person receiving the taxable service.
(4) Nothing contained in this section shall prevent the
collection of tax from different person if that person is
made separately or jointly or severally liable for the tax
under section 19.
Exemptions
12. (1) Notwithstanding the provisions of sections 3 and

10, the Authority may, with the approval of the
Government and subject to such conditions, limitations
or restrictions as it may impose, by notification in the
official Gazette, exempt:(a) taxable service or services from the whole or any
part of the tax;
(b) taxable service or services provided by a person
or class of persons from the whole or any part of
the tax;
(c) recipient or recipients of service or services,
including international organizations and
institutions, from the payment of the whole or
any part of the tax; and
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(d) a class of persons, any area or areas of
Balochistan from the whole or any part of the

tax.
(2) The exemption under sub-section (1) may be allowed
from any previous date specified in the notification
issued under sub-section (1).
Effect of Change in the Rate
of Tax
13. If there is a change in the rate of tax, the taxable

service shall be charged to tax at such rate as is in force
at the time the service is provided.
Special Procedure and Tax

Withholding Provisions
14. (1) Notwithstanding anything contained in this Act,

the Authority may, by notification in the official
Gazette, prescribe a special procedure for the payment
of tax, registration, book keeping, invoicing or billing
requirements, returns and other related matters in
respect of any service or class of services, as may be
specified.
(2) Notwithstanding other provisions of this Act, the
Authority may require any person or class of person
whether registered or not for the purpose of this Act to
withhold full or part of the tax charged from such
person or class of persons on the precision of any
taxable service or class of taxable services and to deposit
the tax so withheld, with the Government within such
time and in such manner as it may, by notification in the
official Gazette, specify.
Delegation of Power to
Collect, Administer and
Enforce Tax on Certain
Services
15. (1) The Government may, in accordance with article

147 of the Constitution of the Islamic Republic of
Pakistan, authorize the Federal Board of Revenue or any
other federal agency or person to administer, collect and
enforce the levy of tax on such taxable services as it may
notify and in such mode and manner and for such period
as may be prescribed and subject to such limitations,
restrictions and conditions as it may deem appropriate.
(2) The Government may, by notification in the official
Gazette, authorize any provincial agency, department,
organization or person to administer, collect and enforce
the levy of tax on such taxable service as it may notify in
such mode and manner and for such period as it may
prescribe and subject to such restrictions and conditions
as it may impose.
(3) At the end of the period prescribed under sub-section
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(1), the tax on taxable services notified under subsection (1), the tax on taxable services notified under
sub-section (1) shall be administered, collected and
enforced by the Authority the same mode and manner as
all other taxable services.
Adjustments
16. (1) The Authority may, subject to such conditions

and restrictions as it may specify, allow registered
persons to claim adjustments or deductions, including
refunds arising as a result thereof, in respect of the tax
paid under any other law on any account in respect of
any taxable service or goods or class of taxable services
or goods provided by them.
(2) For purposes of sub section (1), the Authority may
adopt the principles or concepts laid down in such other
law in respect of adjustments, deductions or refunds
including zero-rating principle.
(3) For the purpose of removal of any doubt it is clarified
that no adjustment or deduction of any tax payable
under any other law shall be claimed by any person
except in the manner and to the extent specified in the
notification issued under sub section (1).
CHAPTER III
PAYMENT AND COLLECTION OF TAX ON TAXABLE SERVICES
Collection of Excess Tax
17. (1) Any person who has collected or collects the tax
or charge, whether under misapprehension of any
provision of this Act or otherwise, which was not
payable as tax or charge or which was in excess of the
tax or charge actually payable and the incidence of
which had been passed on to the person to whom the
service was provided, shall pay the amount of tax or
charge so collected to the Government.
(2) Any amount payable to the Government under subsection (1) shall be deemed to be an arrear payable under
the Act and shall be recovered accordingly.
(3) The burden of proof that the incidence of tax or
charge referred to in sub-section (1) has been or has not
been passed to the person to whom the service is
provided shall be on the person collecting the tax or
charge.
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Time, Manner and Mode of

Payment
18. (1) The tax in respect of a taxable service provided

during a tax period shall be paid by a person at the time
of filing the return in respect of that period under
chapter VI.
(2) For purposes of sub-section (1), a taxable service
shall be considered to have been provided in the tax
period during which:(a) it was provided to the recipient;
(b) an invoice for the value of the taxable service
was issued or was due to be issued or sent or due
to be sent to the recipient; or
(c) consideration for the same was received;
whichever is earlier.
(3) Notwithstanding anything contained in sub-section
(1) the Authority may, by a notification in the official
Gazette, direct that the tax in respect of any taxable
service or such class of taxable services shall be charged,
collected and paid in any other way, mode, manner or
time as may be specified in the notification.
(4) The tax due on taxable service shall be paid by any
of the following modes:(a) through deposit in a bank designated by the
Authority; or
(b) through such other mode and manner as may be
specified by the Authority.
Joint and Several Liability

of Registered Persons
Where Tax Unpaid
19. (1) Where a registered person receiving a taxable

service from another registered person is in the
knowledge of or has reasonable grounds to suspect that
some or all of the tax payable in respect of that taxable
service provided would go unpaid as against the
requirements of this Act, such person as well as the
person providing the taxable service shall be jointly and
severally liable for payment of such unpaid amount of
the tax.
Gazette, exempt any person, service or transaction or
class of persons, services or transactions from the
provision of sub-section (1)
Sales of Taxable Activity or

Transfer of Ownership
20. (1) Where the ownership of any business providing

taxable services is sold, transferred or otherwise
disposed of as an ongoing concern or activity, the fact of
such sale, transfer or other disposition shall be intimated
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to the Commissioner within one month of the

occurrence of such fact by the former owner.
(2) The tax chargeable on the taxable services provided
in the business referred to in sub-section (1) shall be
accounted for and paid by the person to whom sale or
other disposition of such business is made or ownership
thereof is transferred and every such person shall be
liable to registration under this Act.
Estate of Deceased Person
21. The tax liability of a deceased registered person

under this Act shall be the first charge on his estate in
the hands of his successors.
Estate in Bankruptcy
22. (1) Where a registered person is declared bankrupt,

the tax liability under this Act shall pass on to the estate
in bankruptcy if it continues to operate the business.
(2) Where the tax liability is incurred by an estate in
bankruptcy, the tax shall be deemed to be a current
expenditure in the operations of the estate in bankruptcy
and shall be paid before the claims of all other creditors
are settled.
Liability for Payment of Tax

in Case of Private
Companies or Business
Enterprises
23. Where any private company or business enterprise

is wound up and any tax chargeable on or payable by
the company or business enterprise, whether before, or
in the course, or after its liquidation, in respect of any
tax period cannot be recovered from the company or
business enterprise, every person who was an owner of,
or partner in, or director of the company or business
enterprise during the relevant period shall, jointly and
severally with such persons be liable for payment of
such tax.
Assessment of Tax
24. (1) Where on the basis of any information acquired

during an audit, inquiry, inspection or otherwise, an
officer of the Authority is of the opinion that a
registered person has not paid the tax due on taxable
services provided by him or has made short payment,
the officer shall make an assessment of the tax actually
payable by that person and shall impose a penalty and
charge default surcharge in accordance with section 48
and 49.
(2) No order under sub-section (1) shall be made unless
a notice to show cause is given to the person in default
within five year from the conclusion of the tax period to
18
which the assessment relates specifying the ground on

which it is intended to proceed against him and the said
officer shall take into consideration the representation
made by such person and provide him with an
opportunity of being heard if the person so desires.
(3) An order under sub-section (1) shall be made within
one hundred and twenty days of issuance of the show
cause notice or within such extended period as the
officer may, for reasons to be recorded in writhing, fix
provided that such extended period shall ordinarily not
exceed sixty days.
(4) In computing the period specified in sub-section (3)
any period during which the proceedings are adjourned
on account of a stay order or proceedings under section
69 or the time taken through adjournments by the
person shall be excluded.
(5) An order passed by an officer under sub-section (1)
may be further amended as may be necessary when on
the basis of any additional information acquired during
an audit, inquiry, inspection or otherwise the officer is
satisfied that:(a) any tax has been under-assessed or assessed at a
low rate; or
(b) any taxable service provided by the person has
escaped assessment.
(6) The provisions of sub-sections (2), (3) and (4) shall
be applicable to an order passed under sub-section (5).
CHAPTER IV
REGISTRATION
Registration
25. (1) A person shall register under this Act, who:(a) provides any taxable service from his office or
place of business in Balochistan; or

(b) is otherwise required to be registered under any
of the provisions of the Act or the rules; or
(c) fulfills any other criteria or requirement which
the Authority may prescribe under sub-section
(2).
(2) The registration under this section will be regulated
in such manner and subject to such conditions and
19
restrictions as the Authority may, by notification in the

official Gazette, prescribe.
(3) A person who receives a service, which is a taxable
service by virtue of sub-section (2) of section 3, and is
not a registered person shall be deemed to be a
registered person for the purposes of the tax period in
which:(a) such person receives the service;
(b) an invoice for the value of the service is issued or
sent to or received by the person; or
(c) consideration for the service is paid by the
person:whichever is earlier and all the provisions of this
Act and the rules shall be applicable to such
person for that particular tax period and any
matters relating to, arising out of, or concerning
that tax period as if that person had provided
the service.
(4) The Authority may publish on its website a list or
persons registered under this Act.
(5) It shall be reasonable for a person to believe that
another person is registered under this Act if that other
person is on the list placed on the website of the
Authority.
Voluntary Registration
26. (1) A person who carries on an economic activity but

is not required to be registered may apply for voluntary
registration at any time.
(2) if a person who is not required to be registered
applies for voluntary registration, the Authority may
register the person if the Authority is satisfied that:(a) the person is providing, or shall provide a service
that is taxable service if the person was
registered;
(b) the person has a place of business at which he
carries on an economic activity;
(c) there are reasonable grounds to believe that the
person shall keep proper records and file regular
returns as prescribed under this Act and the
rules; and
(d) if the person has commenced carrying on an
economic activity, the person has:i.
kept proper records in relation to his
economic activity; and
20
ii.
Compulsory Registration
(ii) complied with his obligations under

other applicable taxation laws.
27. (1) If the Authority is satisfied that a person who is

required to be registered and has not applied for
registration, the Authority shall register the person and
shall, not later than fifteen before the day on which the
registration takes effect, notify the person of the
registration, the day on which it takes effect, and the
registration number issued to the person.
(2) No person shall be registered compulsorily without
being given an advance notice and an opportunity of
being heard in such manner as the Authority may
specify.
Gazette, authorize any officer to perform any of the
functions under this section relating to compulsory
registration of a person for any of the taxable services.
Suspension of Registration
28. (1) Subject to sub-section (3), the Authority may

temporarily inactivate the registration of a person if it is
satisfied that the person:(a) is not entitled to be registered; or
(b) has failed to comply with obligations under this
Act or the rules.
(2) The Authority shall give notice to a registered
person stating the reasons for temporary inactivation of
the persons registration and the remedial actions
required to be taken by the person in such time as may
be specified in the notice.
(3) In case the Authority is not satisfied with the
response of the person or the remedial action taken by
him or does not receive any response in the specified
time, the Authority may suspend that persons
registration.
(4) The suspension of registration shall be effected by
removing the name of the person from the list of
registered persons published on the Authoritys website.
(5) At any time within a period of sixty days of
suspension, the Authority may withdraw the suspension
if it is satisfied with the remedial actions taken by the
person.
21
(6) Where, after sixty days, the suspension has not been
withdrawn, the Authority may:
(a) institute proceedings against the person in
respect of the alleged non-compliance under
this Act;
(b) reinstate the persons registration; or
(c) if neither of the actions in clauses (a) and (b) is
done, cancel the persons registration.
(7) No registration shall be cancelled unless the
Authority either through enquiry, investigation or audit
is satisfied that circumstances exist necessitating such
cancellation and under no circumstances, the
cancellation of registration shall absolve the person of
his other obligations and liabilities under the Act or the
rules.
De-registration
29. (1) The Authority may de-register a registered

person or such class of registered persons not required
to be registered under this Act.
(2) Where any person registered under this Act believes
that he does not satisfy the requirements for registration
specified in section 25, he may make an application to
the Authority to be de-registered.
(3) If upon receiving such an application, the Authority
is satisfied that the person is not required to be
registered under this Act and has fulfilled the
obligations under the Act, it shall de-register such
person.
(4) Where the Authority receives an application under
sub-section (2), it shall dispose off the application within
a period of three months from the date of the receipt of
the application, or within such extended period, not
exceeding sixty days, as the Authority may, for reasons
to be recorded in writing, fix.
CHAPTER V
BOOK KEEPING AND AUDIT PROCEEDINGS
Issuance of Tax Invoices
30. (1) A registered person providing a taxable service

shall issue a numbered and dated tax invoice containing
the following particulars:(a) name, address and registration number of the
22
service provider;
(b) name, address and registration number, if any,
of the service recipient;

(c) description of service or services;
(d) amount of the tax; and
(e) value inclusive of the tax.

Gazette, specify such modified invoices for different
services or persons and prescribe the manner and
procedure for regulating the issuance and authentication
of tax invoices.
(3) A registered person providing a taxable service may,
subject to such condition and restrictions as the
Authority may, by notification in the official Gazette,
specify, issue invoices to another registered person or
other recipient of taxable service electronically and
transmit images or statements of such invoices to the
Authority as well as to the Commissioner, as may be
specified.
Records
31. (1) A registered person providing taxable service

shall maintain and keep at his business premises or
registered office in English or Urdu the following
records of taxable service (including exempt service)
provided by him or by his agent acting on this behalf in
such form and manner as would permit ready
ascertainment of his tax liability during a tax period:(a) records of taxable service provided
indicating:(i) the description and type of service;
(ii) the value of the service;
(iii) the particulars of the person to whom the
service was provided; and
(iv) any other information as may be specified
by the Authority;
(b) records of exempt service; and
(c) such other records as may be specified by the
Authority.
Gazette, require a registered person or class of
registered persons to declare and use as many number of
business bank accounts as may by specified by the
Authority in such notification to make or receive
payments on account of providing service for purpose of
this Act and the rules and to make payment of due tax
23
from such accounts.

Gazette, specify that any person or class of person
registered under this Act shall use such electronic fiscal
cash registers in such manner as are approved by the
Authority.
Gazette, prescribe the procedure or software for
electronic invoicing or billing, maintenance of records,
filing of tax returns and for any other matter or approve
any software for electronic invoicing or billing,
maintenance of records and filing of returns by a
registered person or class of such persons under this
Act.
(5) The registered persons, whose accounts are subject
to audit under the Companies Ordinance, 1984 (XLVI of
1984), shall be required to submit a copy of the annual
audited accounts, along with a certificate by the auditors
certifying the payment of the tax due and any deficiency
in the tax paid by the registered person.
Retention and Production of
Records and Document
32. (1) A person, who is required to maintain any record

or document under this act, shall retain the record and
documents for a period of five years after the end of the
tax period to which such record or documents relate or
till the final decision in any proceedings including
proceedings for assessment, appeal, revision, reference
or petition, whichever is later.
(2) A person who is required to maintain any record or
documents under this Act or any other law shall, as and
when required by an officer not below the rank of the
Assistant Commissioner, produce records or documents
which are in his possession or control or in the
possession or control of his agent, and where such
records or documents have been stored as electronic
data, he shall allow to such officer full and free access to,
and use of, such data of any machine.
Audit Proceedings
33. (1) An officer authorized by the Authority or the

Commissioner may, on the basis of the return or returns
submitted by a registered person or the records
maintained under this Act and the rules, conduct an
audit of such person.
24
(2) In case the Authority or the Commissioner has any

information showing that my registered person in
involved in tax fraud or evasion of tax, it or as the case
may be, he may authorize an officer not below the rank
of Assistant Commissioner, to conduct an inquiry or
investigation, which may or may not be in addition to
any audit carried out for the same period.
(3) Where the officer is to conduct an audit under subsection (1), he shall issue a notice of audit to the person
informing him of the audit proceedings and direct him
to produce any records or documents, which such officer
may require for conducting the audit.
(4) The officer shall conduct audit and issue an audit
observation or observations pointing out the
contraventions of this Act or the rules and the amount
of the tax evaded or short paid, and the registered
person may, within a period of twenty one days of the
receipt of the audit observation, submit his reply in
writing.
(5) If no reply is received within the specified time or the
reply furnished by the registered person is found
unsatisfactory, the officer shall issue an audit report
specifying the amount of the tax or charge that has not
been levied or has been short levied or any other
violation of any provision of the Act or the rules.
(6) After completion of the audit under this section or
any other provision of this Act or the rules, an officer
having pecuniary jurisdiction in terms of section 60
shall, if required, pass an order determining the correct
amount of payable tax, charging default surcharge and
imposing a penalty.
(7) Notwithstanding the penalties prescribed in section
48:(a) if a registered person wishes to deposit the
amount of the tax short paid or evaded along
with default surcharge voluntarily, whenever it
comes to his notice, he may, before receipt of
notice of audit, file a revised return and may
deposit the amount of tax short paid or evaded
along with default surcharge, in which case no
penalty shall be recovered from him;
(b) if a registered person wishes to deposit the
amount of the tax short paid or evaded along
25
with default surcharge during the audit, or at

any time before issuance of show cause notice
in lieu of the audit report, he may file a revised
return and may deposit the short paid or
evaded amount of the tax, default surcharge
under section 49 and twenty percent of the
penalty payable under section 48 in which case
the show cause notice in lieu of the audit report
shall not be issued in the matter;
(c) if a registered person wishes to deposit the
amount of tax short paid or evaded along with
default surcharge after issuance of show cause
notice, he may file a revised return and may
deposit the short paid or evaded amount of the
tax, default surcharge under section 49, and
fifty percent of the penalty payable under
section 48 and, there after, the show cause
notice shall abate.
Special Audit by Chartered
Accountants or Cost
Accountants
34. (1) The Authority may, by notification in the official

Gazette, appoint a Chartered Accountant as defined
under Chartered Accountants Ordinance, 1961 (X of
1961) or a Firm of Chartered Accountants or a Cost and
Management Accountant within the meaning of the
Cost and Management Accountants Act, 1966 (XIV of
1966) or a firm of Cost and Management Accountants,
for conducting a special audit to the records of any
registered person.
(2) Notwithstanding that the records of a registered
person have been audited by an officer appointed under
section 39, the Authority or a Commissioner may direct
an auditor appointed under sab-section (1) to audit the
records of any registered person for the same period.
(3) An auditor appointed under sub-section (1), shall
have such powers of an officer as may be conferred by
the Authority to such auditor under any of the
provisions of this Act or the rules.
(4) For purposes of this section or section 33, the audit
of records includes audit of the tax affairs of the
registered person under this Act and the rules.
26
CHAPTER VI
RETURNS
Returns
35. (1) Every registered person shall furnish, not later

than the due date, a true, correct and properly filled-up
return in the prescribed form to a designated bank or
any other office specified by the Authority, indicating
the tax due and paid during a tax period and such other
information or particulars as may be prescribed by the
Authority.
(2) Notwithstanding anything in sub-section (1), the
require any registered person or class of registered
persons to submit returns on a quarterly, six monthly or
annual basis in lieu of monthly return.
(3) Notwithstanding anything in sub-section (1), the
require any registered person to submit such returns, as
may, be prescribed, on any period basis in addition to
other returns required to be filed by such person.
(4) A return filed electronically on the website or any
magnetic media or any other computer readable media
as may be specified by the Authority shall be deemed to
be a return for the purpose of sub-section (1), (2) or (3)
and the Authority may, by notification in the official
gazette, prescribe the criteria for eligibility of the data of
such returns and e-intermediaries who shall digitize the
data of such returns and transmit the same
electronically under their digital signatures.
(5) If there is a change in the rate of the tax during a tax
period, a separate return in respect of each portion of tax
period showing the application of different rates of tax
shall be furnished.
(6) A registered person, after prior permission from
Commissioner, file a revised return within one hundred
and twenty days of filing a return under sub-section (1),
(2) or (3), to correct any omission or wrong declaration
made therein and to deposit any amount of the tax not
paid or short paid.
Special Returns
36. In addition to the return or returns specified under

section 35, the Commissioner may require any person,
whether registered or not, to furnish a return (whether
27
on his own behalf or as an agent or trustee) in

prescribed from and such person shall furnish the return
not later than the date specified in this regard.
Final Return
37. If a person applies for de-registration in terms of

section 29, he shall before such de-registration, furnish a
final return to the Authority or the Commissioner in the
specified form in such manner and at such time as may
be directed by directed by the Authority or the
Commissioner.
Return Deemed to Have

Been Made
38. A return purporting to be made on behalf of a

person by his duly appointed representative or agent
shall, for all purposes of this Act or the rules, be deemed
to have been made by such person or under his authority
unless proved to the contrary.
CHAPTER VII
APPOINTMENT OF AUTHORITIES AND THEIR POWERS
Appointment of Authorities
39. (1) For the purposes of this Act and the rules, the
Authority may, in the prescribed manner and by
notification in official Gazette, appoint in relation to any
area or cases specified in the notification, any person to
be a:(a) Commissioner;
(b) Commissioner (Appeals);
(c) Additional Commissioner of the Authority;
(d) Deputy Commissioner;
(e) Assistant Commissioner;
(f) Audit Officer of the Authority;
(g) Inspector of the Authority or
(h) An officer of the Authority with any other
designation
(2) The Commissioner (Appeals) and the Commissioner
shall be subordinate to the Authority.
(3)
The
Additional
Commissioners,
Deputy
Commissioners and the Assistant Commissioners shall
be subordinate to the Commissioner and unless
otherwise directed by the Authority or the
Commissioner, both the Deputy Commissioner and the
Assistant Commissioner shall also be subordinate to the
Additional Commissioner.
(4) The Audit Officers and Inspectors and the officers of
28
other such equal or lower designations, if any, shall be

subordinate to the Deputy Commissioner or to the
Assistant Commissioner.
(5) The Authority may designate any Deputy
Commissioner supervisory incharge of any Assistant
Commissioner either by name or by designation in any
of its subordinate offices or formations.
(6) The Authority may distribute the work and related
functions amongst the above designations in a manner it
deems appropriate and make changes in such work
distribution as and when deemed proper.
Gazette, prescribe uniform including shoulder strips and
badges for different classes of the officers or officials of
the Authority.
(8) All jurisdictional and competency issues arising
under this Act or the rules shall be decided by the
Authority in such manner as it thinks fit.
Powers
40. (1) An officer appointed under section 39 shall

exercise such powers and discharge such duties as are
conferred on him under this Act and the rules and he
shall also be empowered and competent to exercise all
powers and discharge all duties or functions conferred
upon any officer subordinate to him.
(2) The Authority may, by general or special order,
impose such limitations, restrictions or conditions on
the exercise of such powers and discharge of such duties
or functions as it deems fit.
Distribution of Powers
41. (1) The Authority may, by notification in the official

Gazette, and subject to such limitations or conditions,
empower by name or by designation:(a) An Additional Commissioner to exercise or
perform any of the powers or functions of a
Commissioner;
(b) A Deputy Commissioner to exercise or
perform any of the powers or functions of an
Additional Commissioner;
(c) An Assistant Commissioner to exercise or
perform any of the powers or functions of a
Deputy Commissioner; and
(d) Any other officer to exercise or perform any of
29
the powers or functions of an Assistant

Commissioner.
(2) The Authority may confer power and functions of
any officer as additional duties to any officer of the same
rank or a step senior or junior in rank.
(3) An officer to whom any powers or functions are
conferred under this section shall not assign such
powers or functions to any other officer except with the
prior permission of the Authority.
Special Judges
42. (1) The Government may, by notification in the

official Gazette, appoint any person who is serving or
has served as District and Session Judge for a period of
at least five years as Special Judge in consultation with
the Chief Justice of Balochistan High Court and, where
it appoints more than one Special Judge, it shall specify
in the notification the headquarters of each Special
Judge and the territorial limits within which he shall
exercise jurisdiction under this Act and the rules.
(2) If a Special Judge is, for any reasons, unable to
perform his duties under this Act or the rules, District
and Sessions Judge of the District shall perform the
duties of the Special Judge for the District.
Cognizance of Offence
43. (1) The Special Judge may, within the limits of his
jurisdiction, take cognizance of any offence punishable
by him upon:(a) a report in writing made by an officer, not
below the rank of Assistant Commissioner
with the approval of the Commissioner or by
an officer especially authorized in this behalf
by the Authority;
(b) receiving a complaint or information of facts
constituting
such
offence
made
or
communicated by any person; or
(c) his knowledge acquired during any proceeding
before him.
(2) If the Special Judge receives a report under clause (a)
of sub-section (1), the Special Judge shall proceed with
the trial of the accused.
(3) If the Special Judge receives a complaint or
information under clause (b) of sub-section (1), on the
basis of his own knowledge, the Special Judge shall,
30
before issuing a summon or warrant for appearance of

the person, hold a preliminary inquiry for purposes of
ascertaining the truth or falsehood of the complaint,
information or knowledge or direct any Magistrate or
any officer to hold such inquiry and submit a report, and
such Magistrate or officer, shall conduct such inquiry
and make a report accordingly.
(4) If, after conducting such an inquiry or after
considering the report of such Magistrate or officer, the
Special Judge may dismiss the complaint if there are no
grounds to proceed further, or may decide to proceed
against the person in accordance with Law.
(5) A Special Judge or a Magistrate or an officer holding
an inquiry under sub-section (3) may hold such inquiry,
as nearly as possible, in accordance with the provisions
of section 202 of the Code of Criminal Procedure, 1898
(V of 1898).
Application of the Code of
Criminal Procedure, 1898
44. (1) The provisions of the Code of Criminal

Procedure, 1898 (V of 1898), so far as they are not
inconsistent with the provisions of this Act, shall apply
to all proceedings of the Court of a Special Judge and
such court shall be deemed to be a Court of Session for
the purposes of the said Code and the provisions of
Chapter XXII-A of the Code, so far as applicable and
with necessary modifications, shall apply to the trial of
cases by the Special Judge under the Act.
(2) For purposes of sub-section (1), the Code of Criminal
Procedure, 1898 (V of 1898) shall have effect as if an
offence punishable under this Act was one of the
offences referred to in sub-section (1) of section 337 of
the Code.
Exclusive Jurisdiction of
Special Judge
45. No court other than the Special Judge having

jurisdiction, shall try an offence punishable by the
Special Judge under this Act.
Place of Sitting
46. A Special Judge shall ordinarily hold sittings at his

headquarters provided that keeping in view the general
convenience of the parties or the witnesses, he may hold
sittings at any other place.
Persons who may Conduct

Prosecution
47. (1) An officer not below the rank of an Assistant

Commissioner shall be competent to conduct
prosecution before a Special Judge for and on behalf of
31
the Government.
(2) A prosecution conducted under this act before the
Special Judge may only be withdrawn by the Authority
on the direction or after concurrence of the
Government.
CHAPTER VIII
OFFENCES AND PENALITIES
Offences and Penalties
48. (1) If a person commits any offence described in

column 2 of the Table below shall, in addition to and not
in derogation of any punishment to which he may be
liable under any other law, be liable to the penalty
mentioned against that offence in column 3.
(2) The sections referred to in column 4 of the said
Table shall be deemed to be meant for illustrative
purposes only and the corresponding offence described
in column 2 may fall and be prosecuted under other
sections of this Act as well.
S.No
1
Table
Penalties
Section
Such person shall be liable to pay a penalty
25
of ten thousand rupees or five percent of
the amount of the tax he would have been
liable to pay had he been registered,
whichever is higher. In the case of noncompliance of compulsory registration, the
minimum penalty shall be ten thousand
rupees;
If such person who is required to get
himself registered under this Act, fails to
get registered within ninety days of
providing taxable services, he shall be
further liable, upon conviction by a Special
Judge, to imprisonment for a term which
may extend to one year or with fine which
may extend to the amount of the tax he
would have been liable to pay had he been
registered, or with both.
Where any person fails to Such person shall be liable to pay a penalty
35
furnish a return within the of five thousand rupees provided if a
due date
return is not filed within fifteen days of
the due date, a penalty of hundred rupees
for each day of default shall be levied.
Offences
Any person who is required
to apply for registration
under this Act fails to make
an
application
for
registration
before
providing any taxable
services
32
Where any person fails to

deposit the amount of the
tax due or any part thereof
in the time or manner laid
down under this Act or the
rules.
Any person who fails to

maintain record required
under the Act or the rules.
Where a registered person

who,
without
any
reasonable cause, in noncompliance
with
the
provisions of this Act fails
to produce records on
receipt of notice from the
Authority or any officer of
the Authority directing
him to produce such
records.
Any person who knowingly
or fraudulently:
(a) submits a false or forged
document to any officer of
the Authority; or
(b)
destroys,
alters,
mutilates or falsifies the
records; or
(c) makes a false statement,
false declaration, false
representation,
false
personification, or gives
any false information.
Where any person who Such person shall be liable to pay a penalty
(a) Such person shall be liable to pay a

penalty of ten thousand rupees or five
percent of the tax payable for that period,
whichever is higher
(b) If the amount of the tax due is not paid
even after the expiry of a period of sixty
days of issuance of the notice for such
payment by an officer, not below the rank
of Assistant Commissioner, the person
shall be further liable, upon conviction by
a Special judge, to imprisonment for a
term which may extend to three years, or
with fine which may extend to the amount
of the unpaid tax, or with both.
(c) No penalty shall be levied if any
miscalculation is made for the first time
during a year.
Such person shall pay a penalty of ten
thousand rupees of five percent of the total
tax payable for the tax period for which he
has failed to maintain the required record,
whichever is higher.
Where such person is a Company, it shall
be liable to pay a penalty of ten thousand
rupees.
Where such person is not a Company, he
shall be liable to pay a penalty of five
thousand rupees.
Where such person fails to produce the
record within sixty days of receipt of the
notice, he shall be liable to pay the penalty
prescribed for the offence at serial No. 4
above.
of twenty thousand rupees or one hundred
percent of the tax payable for the tax
period to which the offence relates,
Such person shall be further liable, upon
conviction by a Special Judge, to
imprisonment for a term which may
extend to five years or with fine which
may extend to an amount equal to the tax
payable for the tax period to which the
offence relates, or with both.
3, 4, 10
11, 17,
18 and
68
30, 31
and 32
30, 32,
53 and
57
General
31, 32
33
denies or obstructs the

access of an authorized
officer to the business
premises, registered office
or to any other place where
records are kept, or
otherwise refuses access to
accounts of records.
8
Where
any
person
commits, cause to commit
or attempts to commit tax
fraud, or abets or connives
in the commission of tax
fraud equal to twenty five
thousand rupees or more.
Where any person violates

any embargo placed on
providing of service in
connection with recovery
of the tax
10
Where
any
person
obstructs any officer of the
Authority
in
the
performance of his official
duties under this Act or the
rules
11
Where any person who

fails to fulfill any of the
conditions, limitations or
of twenty five thousand rupees or one

hundred percent of the tax payable for the
tax period to which the offence relates,
whichever is higher. Such persons shall,
further be liable, upon conviction by a
Special Judge, to imprisonment for a term
which may extend to five years, or with a
fine which may extend to an amount equal
to the tax payable for the tax period to
which the offence relates, or with both.
of up to five hundred thousand rupees, but
not less than twenty five thousand rupees,
or one hundred percent of the tax payable
for the tax period to which the offence
relates, whichever is higher.
Such person shall, further be liable, upon
extend to five years, or with fine which
may extend to an amount equal to the tax
payable for the tax period to which the
offence relates, or with both.
of twenty five thousand rupees or ten
percent of the amount of the tax sought to
be recovered, whichever is higher.
Such person shall, further be liable, upon
extend to one year, or with fine which may
extend to amount equal to the amount of
the tax sought to be recovered, or with
both.
of twenty five thousand rupees or one
hundred percent of the tax payable for the
tax period to which the offence relates,
Such person shall be further liable, upon
extend to one year or with fine not
exceeding fifty thousand rupees or with
both.
of five thousand rupees or three percent of
the tax payable for the tax period to which
and 56
2 (43)
70
General
General
34
12
13
14
restrictions prescribed in a
notification issued under
any of the provisions of the
Act or the rules.
Where any person who
contravenes any provision
of this Act or the rules for
which no penalty has
specifically been provided
in this section.
Where any person repeats
an offence for which a
penalty is provided under
this Act.
Where any person:(a) knowingly and without
lawful authority gains
access to or attempts to
gain
access
to
the
computerized system; or
(b) unauthorizedly uses or
discloses or publishes or
otherwise
disseminates
information obtained from
the computerized system;
or
(c) falsifies any record or
information stored in the
computerized system; or
(d)
knowingly
or
dishonestly damages or
impairs the computerized
system; or
(e)
knowingly
or
dishonestly damages or
impairs any duplicate tape
or disc or other medium on
which any information
obtained
from
the
computerized system is
kept or stored; or
(f) unauthorizedly uses
unique user identifier of
any other registered user
to
authenticate
a
transmission of information
to
the
computerized
system; or
the offence relates, whichever is higher.

of ten thousand rupees of three percent of
the tax payable for the tax period to which
the offence relates, whichever is higher.
General
Such person shall be liable to pay twice the

amount of penalty provided under the Act
for the said offence.
General
Such person shall pay a penalty of twenty

five thousand rupees or one hundred
percent of the amount equal to the loss
caused to the tax revenue.
Such person shall further be liable, upon
conviction by the Special Judge, to
extend to one year, or with fine which may
extend to an amount equal to the loss
caused to the tax revenue, or with both.
General
35
(g) fails to comply with or

contravenes any of the
conditions prescribed for
security of unique user
identifier.
Default Surcharge
49. (1) Notwithstanding the provisions of section 24, if a

registered person does not pay the tax due or any part
thereof, whether willfully or otherwise, on time or in the
manner specified under this Act, rules or notifications or
procedures issued thereunder, he shall, in addition to the
tax due and any penalty under section 48, pay default
surcharge at the rate mentioned below:(a) the person liable to pay any amount of tax or
charge shall pay default surcharge at the rate
of inter-bank rate plus three percent per
annum of the amount of the tax due; and
(b) in case, the default is on account of tax fraud,
the person who has committed tax fraud shall
pay default surcharge at the rate of two
percent per month, of the amount of tax
evaded, till such time the entire liability
including the amount of default surcharge is
paid.
(2) For the purpose of calculation of default surcharge,
the period of default shall be reckoned from the
sixteenth day following the due date of the tax period to
which the default relates, to the day preceding the date
on which the tax due is actually paid.
Explanation:For purposes of this section, the tax due does not
include the amount of penalty.
Exemption from Penalty and 50. The Government may, by a notification in the
official gazette, exempt any registered person or any
Default Surcharge
taxable service from payment of the whole of any part of
the penalty and default surcharge subject to such
conditions and limitations as may be specified.
Compounding of Offences
51. Notwithstanding anything contained in any other

provision of this Act, where any person has committed
any offence warranting prosecution under the Act, the
Authority may, either before or after the institution of
36
any proceedings for the prosecution of such offence,

compound the offence and terminate the proceedings if
such person pays the amount of the tax due along with
such default surcharge and penalty as is determined by
the Authority under the provisions of this Act and the
rules.
Recovery of the Tax not
Levied or Short-levied
52. (1) Where by reason of inadvertence, error,

misconstruction or for any other reason, any tax or
charge has not been levied or has been short levied, the
person liable to pay such amount of the tax or charge
shall be served with a notice, within three years of the
relevant tax period requiring him to show cause for
payment of the amount specified in the notice.
(2) Where by reason of some collusion, abetment,
deliberate attempt, mis-statement, fraud, forgery, false
or fake document:(a) any tax or charge has not been paid or is,
short paid or the person liable to pay such tax
shall be served with a notice within five years
of relevant tax period, requiring him to show
cause for non-payment of such tax; and
(b) any amount of the tax is refunded which is not
due, the person obtaining such refund shall be
served with a notice within five years of the
receipt of such refund to show cause of
recovery of such refund.
(3) The officer shall, after considering the objections of
the person served with a notice under sub-sections (1) or
(2) or if the objections are not received within the
stipulated period, determine the amount of the tax or
charge payable by him and such person shall pay the
amount so determined.
(4) Any order under sub-section (3) shall be made within
one hundred and twenty days of issuance of the notice to
show cause or within such extended period as the officer
may, for reasons to be recorded in writing, fix provided
that such extended period shall not ordinarily exceed
sixty days.
(5) In computing the period specified in sub-section (4),
any period during which the proceedings are adjourned
on account of a stay order or proceedings under section
69 or the time taken through adjournments by the
petitioner not exceeding thirty days shall be excluded.
37
Power to Summon Persons

to give Evidence and
Produce Documents
53. (1) An officer may summon any person whose

attendance he considers necessary either to tender
evidence or to produce documents or any other thing in
any audit, inquiry, investigation or proceedings which
such officer is making for any of the purposes of this Act
and the rules.
(2) Any person summoned under sub-section (1) shall be
bound to attend either in person or by an authorized
agent, as the officer may direct.
(3) Notwithstanding anything in sub-section (1) and (2),
a person who is exempt from personal appearance in the
Court under sections 132 and 133 of the Code of Civil
Procedure 1908(V of 1908), shall not be required to
appear in person.
(4) Any proceedings under this Act or the rules before
an officer shall be deemed to be judicial proceedings
within the meanings of sections 193 and 288 of the
Pakistan Penal Code 1860 (XLV of 1860).
Power to Arrest and

Prosecute
54. (1) An officer authorized by the Authority by

notification in the official Gazette in this behalf, who on
the basis of material evidence has reasonable cause to
believe that any person has committed a tax fraud or
any offence warranting prosecution under this Act, may
cause arrest of such person.
(2) All arrests made under this Act shall be carried out
in accordance with the relevant provisions of the Code
of Criminal Procedure, 1898 (V of 1898).
(3) Where the person suspected of tax fraud or any
offence warranting prosecution under this Act is a
Company, every Director or officer of that Company
whom the officer reasons to believe is personally
responsible for actions of the Company contributing to
the tax fraud or any offence warranting prosecution
under this Act shall be liable to arrest provided that
such arrest shall not absolve the Company from the
liabilities of payment of the tax, default surcharge and
any penalty imposed or due under this Act.
Procedure to be Followed
on Arrest of a Person
55. (1) When an officer arrests a person under section

54, he shall immediately intimate the fact of arrest of
that person to the Special Judge who may direct such
38
officer to produce that person at such time and place and

on such date as the Special Judge considers expedient.
(1), any person arrested under this Act shall be produced
before the Special Judge or if there is no Special Judge
within a reasonable distance to the nearest Magistrate
within twenty-four hours of such arrest, excluding the
time necessary for the journey from the place of arrest
to the Court of the Special Judge or of the Magistrate.
(3) When any person is produced under sub-section (2)
before the Special Judge, the Special Judge may, on the
request of such person, after perusing the record, if any,
and after giving the prosecution an opportunity of being
heard, admit him to bail on his executing a bound, with
or without sureties, or refuse to admit him to bail and
direct his detention at such place as he deems fit.
(4) Nothing contained herein shall preclude the Special
Judge from cancelling the bail of any such person at a
subsequent stage if, for any reason, he considers such
cancellation necessary but before passing such order he
shall afford such person an opportunity of being heard,
unless for reasons to be recorded he considers that the
affording of such opportunity shall defeat the purpose of
this Act.
(5) When such person is produced under sub-section (2)
before a Magistrate, such Magistrate may, after
authorizing his detention in such custody at such place
and for such period as he considers necessary or proper
for facilitating his earliest production before the Special
Judge direct his production before the Special Judge on a
date and time to be fixed by him or direct such person to
be forthwith taken to, and produced before the Special
Judge and he shall be so taken or produced.
(6) Nothing in sub-section (2), (3) and (4) shall preclude
the Special Judge or the Magistrate from remanding any
such person to the custody of the officer holding an
inquiry or investigation against that person if such
officer makes a request in writing to that effect, and the
Special Judge or the Magistrate, after perusing the
record, if any, and hearing such person is of the opinion
that for the completion of inquiry or investigation it is
necessary to make such order but the total period of
such custody shall not exceed fourteen days.
39
(7) When any person is arrested under this Act, the

arresting officer shall record the fact of arrest and other
relevant particulars in the register specified in subsection (11) and shall immediately proceed to inquire
into the charge against such person and if he completes
the inquiry within twenty-four hours of his arrest, and
he may after producing such person before the Special
Judge or the Magistrate, make a request for his further
detention in his custody.
(8) While holding an inquiry under sub-section (7), the
officer shall exercise the same powers as are conferred
upon or exercisable by an officer in charge of a police
station under the Code of Criminal Procedure 1898 (V of
1898), but such officer shall exercise such powers
subject to the foregoing provisions of this section while
holding an inquiry under this Act.
(9) If the officer, after holding an inquiry, is of the
opinion that there is no sufficient evidence or reasonable
ground for suspicion against such person, he shall
release him on his executing a bond, with or without
sureties, and shall direct such person to appear, as and
when required, before the Special Judge, and make a
report to the Special Judge for the discharge of such
person and shall make a full report of the case to his
immediate superior.
(10) The Special Judge to whom a report has been made
under sub-section (8) may, after the perusal of record of
the inquiry, and hearing the prosecution, agree with
such report and discharge the accused or, if he is of the
opinion that there is sufficient ground for proceedings
against such person proceed with his trial and direct the
prosecution to produce evidence.
(11) The officer holding an inquiry under this section
shall maintain a register to be called register of arrests
and detentions in the form prescribed by the
Government in which he shall enter the name and other
particulars of every person arrested under this Act,
together with the time and date of arrest, the details of
the information received, the details of things, goods or
documents, recovered from his custody, the name of the
witnesses and the explanation, if any, given by him and
the manner in which the inquiry has been conducted
from day to day; and, such register or authenticated
40
copies of its entries shall be produced before the Special

Judge, whenever it is directed by the Special Judge.
(12) After completing the inquiry, the officer shall, as
early as possible, submit to the Special Judge, a
complaint in the same form and manner in which the
officer in charge of a police station submits a report
before a Court.
(13) Any Magistrate of the first class may record any
statement or confession during inquiry or investigations
under this Act in accordance with the provisions of
section 164 of the Code of Criminal Procedure, 1898 (V
of 1898).
Authorized Officers to have
Access to Premises, Stocks,
Accounts and Records
56. (1) Any officer authorized in this behalf by the

Authority by notification in the official Gazette, shall
have free and full access to the business premises,
registered office or any other place where any business
records or documents required under this Act and the
rules are kept or maintained by any registered person or
a person liable for registration or whose business
activities are covered under this Act and the rules or
who may be required for any inquiry or investigation in
any tax fraud committed by him or his agent or any
other person; and such officer may, at any time, inspect
the records, data, documents, correspondence, accounts
statements, utility bills, bank statements, information
regarding nature and sources of funds or assets with
which his business is financed, and any other records or
document, including those which are required under any
other law maintained in any form or mode and may take
into his custody such records, statements, diskettes or
documents, in original or copies, in such form as the
officer may deem fit against a signed receipt.
(2) The registered person, his agent or any other person
specified in sub-section (1), shall answer any question or
furnish such information or explanation as may be asked
by the authorized officer.
(3) All other Government departments, local bodies,
autonomous bodies, corporations or other institutions
shall supply requisite information and render necessary
assistance to the authorized officer in the course if
inquiry or investigation under this section.
41
Obligation to Produce
Documents and Provide
Information
57. (1) Notwithstanding anything contained in this Act

or any other law, any person required to maintain any
record under this Act and rules, shall, on demand by an
officer, not below the rank of an Assistant
Commissioner, by notice in writing, as and when
specified in the notice:(a) produce for examination, such documents or
records which the officer considers necessary
or relevant to the audit, inquiry or
investigation under this Act;
(b) allow the officer to take extracts from or make
copies of such documents or records; and
(c) appear before the officer and answer any
question put to him concerning the documents
and records relating to the audit, inquiry or
investigation referred to in clause (a).
(2) An officer conducting an audit, inquiry or an
investigation under the Act and the rules, may require
in writing any person, department, company or
organization to furnish such information as is held by
that person, department, company or organization,
which, in the pinion of the officer, is relevant to such
audit, inquiry or investigation.
(3) The Authority may require, in writing, any person,
department, company or organization, to provide any
information or data held by that person, department,
company or organization, which in the opinion of the
Authority, is required for purposes of formulation of
policy or administering or implementing this Act ad the
rules.
(4) Every person, department, company or organization
shall furnish the information requisitioned by the
Authority or the officer under sub-section (2) and (3),
within the time specified in the notice issued by the
Authority.
Searches under Warrants
58. (1) Where any officer has reason to believe that any
documents or things which in his opinion, may be useful
for, or relevant to, any proceedings under this Act are
kept in any place, he may after obtaining a warrant
from the Magistrate or from the Commissioner, enter
that place and cause a search to be made at any time.
(2) All searches made under sub-section (1) shall be
carried out in accordance with the relevant provisions of
42
the Code of Criminal Procedure, 1898 (V of 1898).

Posting of an Officer to
Business Premises
59. (1) Subject to such conditions and restrictions as it

deems fit to impose, the Authority may post an officer to
the premises of a registered person to monitor the
provision of services by such registered person.
(1), if a Commissioner, on the basis of material evidence,
has reasonable cause to believe that a registered person
is involved in evasion of the tax or tax fraud, he may, by
recording the grounds in writing, post an officer of the
Authority to the premises of such registered person to
monitor provision of services by such person.
(3) A person to whose premises, an officer of the
Authority is posted under this section, shall provide on
his own cost, all facilities required to meet the
departmental requirements of such posting as
determined by the Authority or the Commissioner.
Powers of Adjudication
60. (1) In respect of cases involving determination of tax

liability, assessment of the tax, charging of default
surcharge, imposition of penalty and recovery of amount
erroneously refunded or any other contravention or
violation including tax fraud under this Act or the rules,
the jurisdiction and powers of adjudication of the
officers shall be as follows:(a) Additional Commissioner: Cases without
any restriction as to the amount of the tax
involved or amount erroneously refunded;
(b) Deputy Commissioner: Cases where the
amount of the tax involved or the amount
erroneously refunded exceeds one million
rupees, but does not exceed two and a half
million rupee;
(c) Assistant Commissioner: Cases where the
amount of the tax involved or the amount
erroneously refunded dose not exceed one
million rupees; and
(d) Other officers of the Authority: Such cases,
other than those mentioned above, as may be
prescribed.
(2) The Commissioner may adjudicate any case falling in
the jurisdiction and powers of any officer subordinate to
him and appeal against the order passed by he
Commissioner in such cases shall lie to the Appellate
43
Tribunal.
(3) The Authority may regulate the system of
adjudication including transfer of cases and extension of
time limit.
Explanation:For purposes of this section, the tax means the principal
amount of the tax other than default surcharge and in
cases where only default surcharge is involved, the
amount of default surcharge.
Revision by the
Commissioner
61. (1) The Commissioner may, of his own motion or on

an application made in writing by a registered person
for revision, call for and examine the record of any
proceedings under this Act in which an order has been
passed by an officer subordinate to him.
(2) If after examining the record under sub-section (1),
the Commissioner is not satisfied with the legality or
propriety of any order passed by an officer, the
Commissioner may make such revision to the order as
he may deem fit.
(3) No order imposing or enhancing any penalty or fine
requiring payment of a greater amount of the tax than
the originally levied amount shall be passed unless the
person affected by such order has been given an
opportunity of showing cause and of being heard.
(4) The Commissioner shall not revise any order under
sub-section (2) if:(a) an appeal under section 63 is pending or the
matter has been referred for resolution under
section 71;
(b) where an appeal against the order lies under
section 63, the time within which such appeal
can be made has not expired or the person has
not waived in writing his right of appeal;
(c) in the case of an application made by a person,
the application has not been made within
ninety days of the date on which such order
was served on the person, unless the
Commissioner is satisfied that the person was
prevented by sufficient cause from making the
application within the time allowed; and
44
(d) in the case where the Commissioner has on his

own motion called for and examined an order
passed by a subordinate officer, more than five
years have lapsed from the date of the
original order.
(5) No application for revision of an assessment shall be
made under sub-section (1) unless the amount of the tax
due under the assessment, as is not in dispute, has been
paid by the taxpayer.
Revision by the Authority
62. (1) The Authority may, of its own motion, call for
and examine the record of any departmental
proceedings under this act or the rules for the purpose
of satisfying itself as to the legality or propriety of any
decision or order passed therein by an officer.
(2) If after examining the record under sub-section (1),
the Authority is not satisfied with the legality or
propriety of any decision or order passed by an officer, it
may pass such order as it may deem fit.
(3) No order imposing or enhancing any penalty or fine
requiring payment of a greater amount of the tax than
the originally levied amount shall be passed unless the
person affected by such order has been given an
opportunity of showing cause and of being heard.
(4) No proceeding under this section shall be initiated in
a case where an appeal under section 67 is pending or
the matter has been referred for resolution under section
71.
(5) No order shall be made under this section after the
expiry of five years from the date of the original decision
or order of the subordinate officer referred to in subsection (1).
CHAPTER IX
APPEALS AND REFERENCES
Appeals
63. (1) Any person, other than the Authority or any of

its employees, aggrieved by any decision or order passed
under section 60 by an officer of the Authority other
than Commissioner may, within thirty days of the date
of receipt of such decision or order, prefer an appeal to
the Commissioner (Appeals).
45
(2) An appeal under sub section (1) shall:(a) be in the prescribed form;
(b) be verified in the prescribed manner;
(c) state precisely the grounds upon which the
appeal is made;
(d) be accompanied by the fee specified in subsection (3); and
(e) be lodged with the Commissioner (Appeals)
within the time set out in sub-section (4).
(3) The prescribed fee shall be:(a) where the appellant is a company, one
thousand rupees; or
(b) where the appellant is not a company, two
hundred rupees.
(4) An appeal shall be preferred to the Commissioner
(Appeals) within thirty days of the receipt of the
decision or order passed under section 60.
(5) The Commissioner (Appeals) may, upon application
in writing by the appellant, admit an appeal after the
expiration of the period specified in sub-section (4) if the
Commissioner (Appeals) is satisfied that the appellant
was prevented by sufficient cause from lodging the
appeal within that period.
Procedure in Appeal
64. (1) The Commissioner (Appeals) shall give notice of

the day fixed for the hearing of the appeal to the
appellant and to the officer of the Authority against
whose order the appeal has been made.
(2) The Commissioner (Appeals) may adjourn the
hearing of the appeal from time to time.
(3) The Commissioner (Appeals) may, before the hearing
of an appeal, allow the appellant to file any new ground
of appeal not specified in the grounds of appeal already
filed by the appellant where the Commissioner (Appeals)
is satisfied that the omission from the appellant in the
form of appeal was not willful or unreasonable.
(4) The Commissioner (Appeals) may stay the recovery
of any tax due by virtue of the decision or order being
appealed against and any such order made by the
Commissioner (Appeals) shall remain operative for not
more than fifteen days during which period a notice
46
shall be issued to the respondent and after hearing the

parties, the order staying recovery may be confirmed,
varied or vacated as the Commissioner (Appeals) deems
fit but stay order so confirmed, varied or vacated as the
Commissioner (appeals) deems fit but the stay order so
confirmed or varied shall remain operative for not more
than sixty days, including any period for which the
recovery may have been stayed prior to the confirmation
or variation of the stay order.
(5) The Commissioner (Appeals) may, before disposing
of an appeal, call for such particulars, documents,
records or information as the Commissioner (Appeals)
may require resecting the matters arising in the appeal
or cause further inquiry to be made by the officer of the
Authority.
Decision in Appeal
65. (1) In disposing of an appeal lodged under section

63, the Commissioner (Appeals) may pass such order as
he deems fit, confirming varying, altering, sting aside or
annulling the decision or order appealed against.
(2) In deciding an appeal, the Commissioner (Appeals)
may make such further inquiry as may be necessary
provided that he shall not remand the case for de novo
consideration.
(3) The Commissioner (Appeals) shall not increase the
amount of any tax payable by the appellant unless the
appellant has been given an opportunity of showing
cause against such increase.
(4) The Commissioner (Appeals shall communicate his
order to the appellant and the Authority.
(5) An order passed by the Commissioner (Appeals)
under sub-section (1) shall be passed not later than one
hundred and twenty days from the date of filing of
appeal or within such extended period, not exceeding
sixty days, as the Commissioner (Appeals) may, for
reasons to be recorded in writhing, fix.
(6) In computing the aforesaid time period, any period
during which the proceedings are adjourned on account
of a stay order or proceedings under section 71 or the
time taken through adjournments by the appellant shall
be excluded.
47
(7) Where the Commissioner (Appeals) has not made an

order under sub-section (1) before the expiration of one
hundred and eighty days from the end of the month in
which the appeal was lodged, the Commissioner
(Appeals) shall transfer his appeal to the Appellate
Tribunal and the Tribunal shall decide the appeal under
this Act as if it has been filed against the order of the
Commissioner (Appeals).
(8) While transferring the undecided appeal to the
Appellate Tribunal, the Commissioner (Appeals) shall
attach his comprehensive report explaining the
circumstances and reasons due to which the appeal could
not be decided within time.
(9) For purposes of sub-section (5), any period during
which the hearing of an appeal is adjourned on the
request of the appellant shall be excluded in the
computation of the period mentioned in the sub-section.
Appellate Tribunal
66. (1) The Appellate Tribunal shall consist of two

judicial and one technical members.
(2) The Government shall appoint the judicial members
of the Appellate Tribunal from amongst the District and
Session Judges in consultation with the Balochistan
High Court.
(3) The Government shall appoint a person as Technical
member of the Appellate Tribunal for a period of three
years, who is or has been:
a. an officer in B-21 of the Federal Board of
Revenue
possessing
local/domicile
of
Balochistan province; or
b. an officer in B-21 of the of Finance
Department or Federal Finance Division,
possessing local/domicile of Balochistan
province; and
c. shall not be more than sixty two years age at
the time of appointment.
(4) The Technical member of the Appellate Tribunal
shall be eligible for re-appointment for a similar term,
provided that the age at the time of re-appointment for
48
second term shall not exceed sixty five years.

Provided that there shall be no further re-appointment
of such person on expiry of second term.
(5) The Government shall designate on of the judicial
members of the Appellate Tribunal as its Chairperson
(6) The Appellate Tribunal may exercise its powers and
discharge its functions in the prescribed manner in such
Benches as the Chairperson may constitute from
amongst the members of the Appellate Tribunal.
(7) Subject to the provisions of sub-section (6), the
Appellate tribunal shall have the power to regulate its
own procedure, and the procedure of the Benches of the
Appellate Tribunal in all matters relating to the
discharge of its functions including the places at which
the Benches shall hold their sittings.
(8) The Government may from time to time increase or
decrease the number of members of the Appellate
Tribunal by way of notification.
Appeal to the Appellate
Tribunal
67. (1) Where the taxpayer or an officer not below the

rank of Additional Commissioner objects to any order
passed by the Commissioner (Appeals), including an
order under sub section (4) of section 64, the taxpayer or
the officer may appeal to the Appellate Tribunal against
such order.
(2) An appeal under sub-section (1) shall be:(a) in the prescribed form;
(b) verified in the prescribed manner;
(c) accompanied, except in case of an appeal
preferred by an officer by the fee specified in
sub-section (3); and
(d) preferred to the Appellate Tribunal within
sixty days of the date of receipt of the order of
the Commissioner (Appeals) by the taxpayer
or the officer.
(3) The fee for an appeal shall be two thousand rupees.
(4) The Appellate Tribunal may, upon application in
49
writing, admit an appeal after the expiration of the

period specified in clause (d) of sub-section (2) if it is
satisfied that the person appealing was prevented by
sufficient cause from filing the appeal within that period.
Disposal of Appeals by the
Appellate Tribunal
68. (1) The Appellate Tribunal may, before disposing if

an appeal, call for such particulars, documents, records
or information as it may require in respect of the
matters arising from the appeal or cause further inquiry
to be made by the officer of the Authority.
(2) The appellate Tribunal shall afford an opportunity of
being heard to the parties to the appeal and, in case of
default by any of the parties on the date of hearing, the
Tribunal may, if it deems fit, dismiss the appeal in
default, or may proceed ex-parte to decide the appeal on
the basis of the available record but the Appellate
Tribunal shall decide the appeal within six months from
the date of filing of the appeal.
(3) The Appellate Tribunal may stay the recovery of any
tax due by virtue of the decision or order being appealed
against and any such odder made by the Appellate
Tribunal shall remain operative for not more than thirty
days during which period a notice shall be issued to the
respondent and after hearing the parties, the order
staying recovery may be confirmed, varied or vacated as
the Appellate Tribunal deems fit but the stay order so
confirmed or varied shall remain operative for not more
than ninety days including any period for which the
recovery may have been stayed prior to the confirmation
or variation of the stay order.
(4) In deciding the appeal, the Appellate Tribunal may,
without prejudice to the powers specified in sub-section
(2), make an order to:(a) affirm, modify or annul the order being
appealed against; or
(b) remand the case to the officer or the
Commissioner (Appeals) for making such
inquiry or taking such action as the Tribunal
may direct.
(5) The Appellate Tribunal shall not increase the
amount of any tax payable, penalty or default surcharge
unless the taxpayer has been given a reasonable
opportunity of showing cause against such increase.
50
(6) The Appellate Tribunal shall communicate its order

to the taxpayer and the Commissioner.
(7) Save as provided in any other law, the decision of the
Appellate Tribunal on an appeal shall be final.
Reference to the High Court
69. (1) A reference to the High Court shall lie only if a

question of law is involved in a case.
(2) Any person or the Authority may, within sixty days
from the date of communication of the final order of the
Appellate Tribunal, prefer a reference in the prescribed
form along with a statement of the facts of the case and
question of law involved in the case.
(3) The High Court may dismiss a reference in limine if
it is satisfied that the reference does not contain any
question of law for determination.
(4) The reference under this section shall be heard by a
bench of at least two Judges of the High Court and
provision of section 98 of the Code of Civil Procedure
1908 (V of 1908) shall, as far as possible, apply to such
reference.
(5) The High Court shall send a copy of the judgment
under the seal of the Court to the
Appellate Tribunal.
(6) Notwithstanding that a reference has been preferred
in the High Court, the tax shall be paid in accordance
with the order of the Appellate Tribunal.
(7) If the tax liability is reduced by the High Court and
the Authority decides to seek leave to appeal to the
Supreme Court, the Authority may, within thirty days of
the receipt of the judgment of the Court, apply to the
High Court to postpone the refund until the decision by
the Supreme Court.
(8) Section 5 of the Limitation Act 1908 (IX of 1908)
shall apply to a reference under
Sub-section (1).
(9) A court fee of rupees one thousand shall be affixed on
a reference under this section except when it is filed by
the Authority.
51
Deposit of the Tax Demand

while Appeal is Pending
70. Where in any appeal, the decision or order appealed

against relates to any tax demanded under this Act, the
person who has filed the appeal shall, pending the
appeal, deposit the admitted amount of the tax based on
the return filed under section 35 or as may be
determined by the Commissioner (Appeals) or the
Appellate Tribunal where such return has not been filed.
Alternate Dispute
Resolution
71. (1) Notwithstanding any other provisions of this Act

or the rules, any registered person aggrieved in
connection with any dispute pertaining to:(a) the liability of the tax against the registered
person;
(b) the extent of waiver of default surcharge and
penalty;
(c) relaxation of any procedural or technical
irregularities and condition of any
(d) prescribed time limitation; and
(e) any other specific relief required to resolve the
dispute, may apply to the Authority for the
appointment of a committee for the resolution
of any dispute mentioned in detail in the
application.
(1), the Authority shall not accept an application under
sub-section (1) where criminal proceedings have been
initiated or where the Authority is of the opinion that
the interpretation of a question of law having a larger
impact on revenue or on a number of similar cases is
involved.
(3) The Authority may, after examination of the
application of a registered person, appoint a committee
of not less than three persons within thirty days of
receipt of such application, consisting of an officer of the
Authority not below the rank of an Additional
Commissioner and nominees from the notified panel
consisting of Chartered or Cost Accountants, Advocates,
representatives of trade bodies or associations, retired
officers of the rank of not less than BS-20, retired
Judges, or any other reputable taxpayers, for the
resolution of the dispute.
(4) The committee constituted under sub section (3)
shall examine the issue and may, if it deems fit, conduct
an inquiry, seek expert opinions, direct any officer of the
Authority or any other person to conduct an audit and
52
shall make recommendations to the Authority within

ninety days of its constitution in respect of the dispute.
(5) If the committee fails to make recommendations
within the said period, the Authority may dissolve the
committee and constitute a new committee which shall
decide the matter within a further period of ninety days
and even if after expiry of that period the dispute is not
resolved, the matter shall be taken up before the
appropriate forum provided under this Act for decision.
(6) The Authority may, on the recommendation of the
committee, pass such order, as it may deem appropriate
within forty-five days of the receipt of the
recommendations of the committee.
(7) The registered person may make payment of the tax
as determined by the Authority in its order under sub
section (6), and such order of the Authority shall be
submitted before the forum, Appellate Tribunal or the
Court where the matter is pending adjudication for
consideration of orders as deemed appropriate.
CHAPTER X
RECOVERY OF ARREARS
Recovery of Arrears of Tax
72. (1) Subject to sub-section (2), where any amount of

the tax is due from any person, the officer of the
Authority may:(a) deduct the amount from any money owing to the
person from whom such amount is recoverable
and which may be at the disposal or in the
control of such officer or any officer of the
Authority;
(b) require by a notice in writing any person who
holds or may subsequently hold any money for
or on account of the person from whom tax is
recoverable to pay to such officer the amount
specified in the notice;
(c) require by a notice in writing any bank to attach
that persons bank accounts;
(d) seal the persons business premises till such time
as the amount of the tax is paid or recovered in
full;
(e) attach and sell any movable or immovable
property of the person from whom the tax is due;
and
53
(f) recover such amount by attachment and sale of

any movable or immovable property of the
guarantor, person, company, bank or financial
institution where a guarantor or any other
person, company, bank or financial institution
fails to make payment under such guarantee,
bond or instrument.
(2) If any arrears of tax, default surcharge, penalty or
any other amount which is payable by any person
cannot be recovered in any manner whatsoever, the
Authority or the Commissioner if so authorized by the
Authority, may for reasons to be recorded in writing
write off the arrears or amount in the manner in the
prescribed manner.
CHAPTER XI
AGENTS, REPRESENTATIVES AND E-INTERMEDIARIES
Agent
73. (1) For purposes of this Act and subject to subsection (2) and (3), the expression agent in respect of a
registered person, means:(a) where the person is an individual under a legal
disability, the guardian or manager who receives
or is entitled to receive income, financial gains or
benefits, funds, money or property on behalf, or
for the benefit of, the individual;
(b) where the person is a Company (other than a
Trust, a Provincial Government, or local
authority in Pakistan ), a Director or a Manager
or Secretary or Accountant or any similar officer
of the company;
(c) where the person is a Trust declared by a duly
executed instrument in writing, whether
testamentary or otherwise, any trustee of the
trust;
(d) where the person is a Provincial Government,
or local authority in Pakistan, any individual
responsible for accounting for the receipt and
payment of money or funds on behalf of the
Provincial Government or the local authority;
(e) where the person is an Association of persons, a
Director or a Manager or Secretary or
Accountant or any similar officer of the
Association or, in the case of a firm, any partner
in the firm;
(f) where the person is the Federal Government,
54
any individual responsible for accounting for the

receipt and payment of moneys or funds on
behalf of the Federal Government; or
(g) where the person is a public international
organization, or a foreign government or
Political sub-division of a foreign government,
any individual responsible for accounting for he
receipt and payment of moneys or funds in
Pakistan on behalf of the organization,
government, or political subdivision of the
government; or
(h) when any person is expressly or impliedly
authorized by a registered person to be his agent
for all or any of the purposes of this Act.
(2) Where Court of Wards, Administrator General,
Official Trustee, or any receiver or manager appointed
by, or under any order of a Court receives or is entitled
to receive income on behalf, or for the benefit of any
person, such Court of Wards, Administrator General,
Official Trustee, receiver or manager shall be the agent
of the person for purposes of this Act.
(3) Notwithstanding anything in this section, any
registered person may expressly or impliedly authorize
another person to be his agent for all or any of the
purposes this Act.
Liability and Obligations of
Agents
74. (1) Every agent of a person shall be responsible for

performing any duties or obligations imposed by or
under this Act and the rules on the person, including the
payment of the tax,
(2) Subject to sub-section (5) of this section, the tax that
by virtue of sub-section (1), is payable by an agent of a
registered person shall be recoverable from the agent
only to the extent of any assets of the registered person
that are in the possession or under the control of the
agent.
(3) Every agent of a registered person who pays any tax
owing to the registered person shall be entitled to
recover the amount so paid from the registered person
or to retain the amount so paid out of any moneys of the
registered person that are in the agents possession or
under the agents control.
(4) Any agent, or any person who apprehends that he
55
may assessed as an agent, may retain out of any money

payable by him to the person on whose behalf he is liable
to pay the tax (hereinafter in this section referred to as
the principal), a sum equal to his estimated liability
under this act, and in the event of disagreement between
the principal and such an agent or a person as to the
amount to be so retained, such agent or person may
obtain from the Commissioner a certificate stating the
amount to be so retained pending final determination of
the tax liability and the certificate so obtained shall be
his conclusive authority for retaining that amount.
(5) Every agent shall be personally liable for the
payment of any tax due by the agent if, while the
amount remains unpaid, the agent:(a) alienates, charges or disposes of any moneys
received or accrued in respect of which the tax
is payable; or
(b) disposes of or parts with any moneys or funds
belonging to the registered person that if such
tax could legally have been paid from or out of
such moneys or funds.
(6) Nothing in this section shall relieve any person from
performing any duties imposed by or under this Act on
the person, which the agent of the person has failed to
perform.
Liability of the Registered
Person for the Acts of his
Agent
75. A registered person shall be responsible for any and

all acts done by his agent.
Appearance by Theorized
Representative
76. A registered person required to appear before the

Appellate Tribunal or an officer in connection with any
proceedings under this Act may, in writing authorize
any person having such qualification as may be
prescribed by the Authority, to represent him or appear
on his behalf.
E-intermediaries to be
Appointed
77. (1) Subject to such conditions, limitations and

restrictions as the authority may impose, the Authority
may, by a notification in the official Gazette, appoint a
person as e-intermediary to electronically file returns
and other electronic document under this Act and the
rules on behalf of a registered person.
(2) A registered person may authorize an e-intermediary
to electronically file returns or any other documents on
56
his behalf as specified in sub-section (1).

(3) The return or such other documents filed by an eintermediary on behalf of a registered person shall be
deemed to have been filed by that registered person.
(4) Where this Act requires anything to be done by a
registered person and if such thing is done by an eintermediary authorized by the registered person under
sub-section (2), unless the contrary is proved, such thing
shall be deemed to have been done with the knowledge
and consent of the registered person so that in any
proceedings under this Act, the registered person shall
be liable as if the thing has been done by him.
(5) Where an e-intermediary, authorized by a registered
person under sub-section- (2) to act on his behalf,
knowingly or willfully submits false or incorrect
information or document or declaration with an intent
to avoid payment of the tax due or any part thereof,
such e- intermediary shall be jointly and severally
responsible for recovery of the amount of tax short paid
as a result of such incorrect or false information or
document or declaration, without prejudice to any other
action that may be taken against him or the registered
person under the relevant provisions of the law.
Gazette, prescribe rules for the conduct and transaction
of business of e-intermediaries, including their
appointment,
suspension
and
cancellation
of
appointment, subject to such conditions and restrictions
as specified in such rules.
CHAPTER XII
GENERAL ADMINISTRATION
Power to Make Rules
78. (1) The authority may, with the approval of the

government and by notification in the official Gazette,
make the rules for carrying out the purposes of any of
the provisions of this Act.
(2) All rules made under sub-section (1) during a
financial year shall be laid before the Provincial
Assembly of Balochistan at the time of presentation of
the Annual Budget for the next financial year.
57
(3) The rules made under this Act shall be collected,

arranged and published along with general orders and
departmental instructions, directions, notifications and
rulings, if any, at appropriate intervals and sold to the
public at a reasonable price.
Computerized System
79. (1) The Authority may prescribe the use of a

computerized system for carrying out the purposes of
this Act and the rules including the receipt of
applications for registration, returns and such other
declarations or information required to be provided
under this Act and the rules from such date and for such
registered persons or class of persons as the Authority
may, by notification in the official Gazette, specify.
(2) The Authority may regulate the conduct and
transaction of business in relation to the submission of
returns or other information to the Authority by the
persons required to transmit or receive any information
through the computerized system, including matters
such as the grant of authorization, suspension and
cancellation of authorization and for security of the
information transmitted or received through the
computerized system.
(3) The information received in the computerized
system from or on behalf of any registered person shall,
for all official and legal purposes, be deemed to have
been furnished by and received from such registered
person.
(4) The business information gathered through
computerized system shall be confidential to be used
only for official and legal purposes and no unauthorized
person shall claim or be provided any access to such
information.
Service of Orders and

Decisions
80. (1) Subject to this Act, any notice, order or

requisition required to be served on an individual for the
purposes of this Act shall be treated as properly served
on the individual if:(a) personally served on the individual or, in the
case of an individual under a legal disability
the agent of the individual;
(b) send by registered post or courier service to
the individuals usual or last known address in
Pakistan; or
(c) served on the individual in the manner
58
prescribed for service of a summon under the

Code of Civil Procedure, 1908 (V of 1908).
(2) Subject to this Act, any notice order or requisition
required to be served on any person, other than an
individual to whom sub-section (1) applies, for the
purposes of this Act, shall be treated as properly served
on the person if:(a) personally served on the agent of the person;
(b) sent by registered post or courier service to
the persons registered office address for
service of notices under this Act in Pakistan or
where the person does not have such office or
address, the notice is sent by registered post
to any office or place of business of the person
in Pakistan; or
(c) served in the manner prescribed for service of
a summons under the Code of Civil Procedure,
1908 (V of 1908).
(3) Where an association of persons is dissolved, any
notice, order or requisition required to be served under
this Act, on the association or a member of the
association may be served on any person who was the
principal officer or a member of the association
immediately before such dissolution.
(4) Where a business stands discontinued, any notice
order or requisition required to be served under this
Act, on the person discontinuing the business may be
served on the person personally or on any individual
who was the persons agent at the time discontinuance.
(5) The validity of any notice issued under this Act or
the validity of any service of a notice shall not be called
into question after notice has been complied with in any
manner.
(6) Any registered person may indicate, in the manner
prescribed by the Authority, that he whishes to
electronically receive all or specific communications,
including notifications, orders, assessments and
requisitions from the Authority, the Appellate Tribunal
or any officer of the Authority.
Gazette, direct that all or specific communications,
including notification
order assessments and
59
requisitions from the authority, the Appellate Tribunal

or any officer to a specific registered person or class of
registered persons shall be made electronically.
(8) For purposes of sub-section (6) and (7), a registered
person shall be considered to have received the
electronic communication within seventy two hours of
the sending of the electronic communication by the
Authority, Appellate Tribunal or the officer of the
Authority.
(9) For purposes of sub-section (6), (7) and (8), an
electronic communication includes a communication
sent by email.
Correction of Clerical Errors 81. (1) Any clerical or arithmetical error in any
assessment, adjudication order or decision may, at any
time be corrected by the officer of the Authority who
made the assessment or adjudication or passed such
order or decision or by his successor in office, through
an order made under this section.
(2) Before any correction is made under sub-section (1),
notice shall be given to the registered person likely to be
affected by such correction.
Issuance of Duplicate of the
Tax Documents
82. An officer of the Authority not below the rank of the

Assistant Commissioner may, on payment of one
hundred rupees, issue an attested copy of any document
filed by a registered person with the Authority.
Power to Issue Orders,

Instructions and Directions
83. The Authority may issue such orders, instructions

and directions, not inconsistent with this Act and the
rules, to all officers of the authority, as it may deem
necessary to implement, administer or enforce the
provisions of this Act and the rules.
Officers of the Authority to

Follow Orders
84. (1) All officers of the Authority and other persons

employed in the administration of this Act and the rules
shall observe and follow the orders, instructions and
directions of the Authority.
(2) No such orders, instructions or directions shall be
given so as to interfere with the powers or discretion of
officers of the Authority in the exercise of their judicial
or quasi-judicial functions.
60
CHAPTER XIII
MISCELLANEOUS
Computation of Limitation
Period
85. In computing the period of limitation prescribed for

any appeal or application under this Act, the day on
which the order complained against was served and, if
the concerned person was not furnished with a copy of
the order, the time requisite for obtaining a copy of such
order shall be excluded.
Condonation of Time-limit
86. (1) Where any time or period has been specified

under any of the provisions of the Act or the rules
within which any act or thing, including submission of
an application, filing of a return or payment of tax, is to
be done, the Authority may permit such application to
be made or such act or thing to be done within such
time or period as it may consider appropriate.
Gazette, and subject to such limitations or conditions as
may be specified therein, empower any Commissioner or
the officer of the Authority to exercise the power under
this section in any case or class of cases.
Bar of Suits, Prosecution

and other Legal Proceedings
87. (1) No suit shall be brought in any Civil Court to set

aside or modify any order passed, any assessment made,
any tax levied, any penalty or default surcharge imposed
or any tax made under this Act.
(2) No suit, prosecution or other legal proceedings shall
lie against the Government or against any public
servant in respect of any order passed in good faith
under this Act.
(3) Notwithstanding anything in any other law, no
investigation or inquiry shall be undertaken or initiated
by any government agency against any officer or official
for anything done in his official capacity under this Act,
except with the permission of the Authority.
Removal of Difficulties
88. (1) The Government may pass such order, for

removing any difficulty or for bringing the provisions of
this Act into effective operation direct that provisions of
this Act shall, during such period as may be specified in
the order, have effect subject to such adaptations
whether by way of modification or addition or omission
61
as it may deem to be necessary or expedient.

(2) The power under this section shall not be exercised
after the expiry of 2ho years from the commencement of
this Act.
Repeal and Saving
89. (1) The Balochistan Sales Tax Ordinance, 2000 (II

of 2000) is hereby repealed.
(2) Any proceeding under the repealed ordinance
pending on the date notified under sub-section (3) of
section 1 before any authority, forum any court by way
of adjudication, assessment, appeal, reference, revision
or prosecution shall be continued and disposed off as if
this Act has not come into force.
(3) Where the Government or the Authority takes any
action, makes any decision or orders, issues any
instructions, directions, clarifications or notifications in
pursuance of or in exercising of powers conferred under
nay provision of any law in respect of any matter
relating to the tax and allied issues covered under this
Act or the rules, such actions, decisions, orders,
instructions, directions, clarifications and notification
shall be deemed to have been validly issued to serve the
purposes of this Act and the rules.
(5) Where so directed by the Government, any tax
payable but not paid under the Balochistan Sales Tax
Ordinance, 2000 (II of 2000) may be recovered under
this Act, but without prejudice to any action already
taken for the recovery of the amount under the said
Ordinance.
Statement of Objects and Reasons:
In the post 18th Constitutional amendment, the subject
of Sales Tax on Services was devolved to the provinces.
Except Balochistan, all other provinces established their
own Revenue collection mechanism under the said head
and improved the relevant Law by enhancing the tax
base. In case of Balochistan, FBR was authorized to
collect the said tax on its behalf as per Sales Tax
Ordinance 2000 and subsequent amendments therein.
The revenue received under the said head in the
preceding years remained short of expectations. In order
to enhance the tax base and improve fiscal capacity of
62
the province, it is expedient to promulgate a

comprehensive Sales Tax on Services Law; hence this
Bill is placed before the Provincial Assembly for
consideration and approval. The Provincial Cabinet has
approved the Bill.
(Mir Khalid Hamayun Langau)
Advisor to the Chief Minister for
Finance Department
(Secretary)
Balochistan Provincial Assembly
63
BALOCHISTAN SALES TAX ON SERVICES ACT, 2015
FIRST SCHEDULE
(Classification of Services)
(see sub-section (38) of section 2)

Classification
(1)
Description
(2)
98.01
Services provided by hotels, motels, guest houses,

restaurants, marriage halls, lawns, clubs and caterers.
9801.1000
9801.2000
9801.3000
9801.4000
9801.5000
9801.6000
Services provided by hotels, motels and guesthouses.

Services provided by restaurants.
Services provided by marriage halls and lawns.
Services provided by clubs
Services provided by caterers, suppliers of food and drinks
Ancillary services provided by hotels, motels, guesthouses,
restaurants, marriage halls, lawns, and caterers.
Services provided by messes and hotels.
Others.
9801.7000
9801.9000
98.02
9802.1000
9802.2000
9802.3000
9802.4000
9802.5000
9802.9000
98.03
9803.1000
Advertisements
Advertisements on T.V.
Advertisements on Radio.
Advertisements on Closed Circuit T.V.
Advertisements in Newspapers and Periodicals.
Advertisements on Cable T.V. Network.
Advertisements on Poles.
Advertisements on Billboards.
Others.
9803.2000
9803.2100
Facilities for travel.

Travel by air of passengers within the territorial jurisdiction of
Pakistan.
Travel by air of passengers embarking on international journey
from Pakistan.
Domestic travel by train.
Others.
98.04
9804.1000
9804.2000
9804.9000
Services provided for inland carriage of goods.

Carriage of goods by air.
Carriage of goods by train.
Others.
98.50
Services provided by persons authorized to transact business

on behalf of others.
Shipping agents.
9803.1100
9805.1000
64
9805.2000
9805.2100
9805.3000
9805.4000
9805.5000
Classification
(1)
Stevedores.
Ship management service.
Freight forwarding agents
Customs agents.
Travel agents.
Description
(2)
9805.5100
9805.6000
9805.7000
9805.8000
9805.9000
9805.9100
9805.9200
9805.9090
Tour operators.
Recruiting agents.
Advertising agents.
Ship chandlers.
Share transfer agent.
Sponsorship services.
Business support services.
Others.
98.06
9806.1000
9806.2000
9806.3000
9806.9000
Services provided in matters of hire.

Purchase or sale of moveable or immovable goods or property.
Property dealers.
Car/automobiles dealers.
Dealers of second hand good other than automobiles.
9807.0000
Services provided by property developers and promoters.
9808.0000
Courier Services.
9809.0000
Services provided by persons engaged in contractual

execution of work or furnishing supplies.
9810.0000
Services provided for personal care by beauty parlors/clinics,

slimming clinics and others.
9811.0000
Services provided by laundries and dry cleansers.
98.12
Telecommunication Services.
9812.10000
9812.1100
9812.1200
9812.1210
9812.1220
9812.1300
9812.1400
9812.1500
9812.1600
9812.1700
9812.1710
9812.1720
9812.1910
Telephone Services.
Fixed line voice telephone service.
Wireless telephone.
Cellular telephone.
Wireless Local Loop telephone.
Video telephone.
Payphone cards.
Prepaid calling cards.
Voice mail service.
Messaging service.
Short message service (SMS).
Multimedia message service (MMS).
Shifting of telephone connection.
65
9812.1920
9812.1930
9812.1940
9812.1950
9812.1960
9812.1970
9812.1990
9812.2000
9812.2100
Classification
(1)
Installation of telephone connection.

Provision of telephone extension.
Changing of telephone connection.
Conversion of NWD connection to non-NWD or vice versa.
Cost of telephone set.
Restoration of telephone connection.
Others.
Bandwidth Services.
Copper line based.
Description
(2)
9812.2200
9812.2300
9812.2400
9812.2500
9812.2900
9812.3000
9812.4000
9812.5000
9812.5010
9812.5090
9812.6000
9812.6100
9812.6110
9812.6120
9812.6121
9812.6122
9812.6123
9812.6124
9812.6125
9812.6129
9812.6130
9812.6140
Fiber-optic based
Co-axial cable based.
Microwave based
Satellite based
Others.
Telegraph.
Telex.
Telefax.
Store and forward fax services.
Others.
Internet services
Internet services including services.
Dial-up Internet services.
Broadband servers for DSL connection.
Copper line based
Fiber-optic based.
Wireless based.
Satellite based.
Others.
Internet/email/data/SMS/MMS services on WLL networks.
Internet/email/data/SMS/MMS services on cellular mobile
networks.
Others.
Data Communication network services (DCNS).
Copper line based.
Fiber-optic based.
Wireless/radio based.
Satellite based
Others
Value added data services.
Virtual Private Network Services (VPN)
Digital Signature Services
Others
Audio text services
9812.6190
9812.6200
9812.6210
9812.6220
9812.6230
9812.6240
9812.6250
9812.6290
9812.6300
9812.6310
9812.6320
9812.6390
9812.9000
66
9812.9100
9812.9200
9812.9300
9812.9400
9812.9410
9812.9490
9812.9500
9812.9090
Tele-text services
Trunk radio services
Paging services.
Voice paging services.
Radio paging services.
Vehicle tracking services.
Burglar alarm services.
Others.
Classification
(1)
Description
(2)
98.13
leasing
financial
services.
9813.1000
9813.1100
9813.1200
9813.1300
9813.1400
9813.1500
9813.1600
9813.2000
9813.3000
9813.3010
9813.3020
9813.3030
9813.3090
9813.3900
9813.4000
9813.4100
9813.4200
9813.4300
9813.4400
9813.4500
9813.4600
9813.4700
9813.4800
9813.4900
Services provided by banking companies, insurance companies,

cooperative financing societies modarbas, musharikas,
companies, foreign exchange dealers, non-banking
intuitions and other persons dealing in any such
Services provided in respect of insurance to policyholder by an
insurer, including a reinsure.
Goods insurance.
Fire insurance.
Theft insurance.
Marine insurance.
Life insurance.
Other insurance.
Services provided in respect of advances and loans.
Services provided in respect of leasing.
Financial leasing.
Commodity or equipment leasing.
Hire-purchase leasing.
Others.
Services provided in respect of musharika financing.
Services provided by banking companies in relation to;
Guarantee.
Brokerage.
Letter of credit.
Issuance of pay order and demand draft.
Bill of exchange.
Transfer of money including telegraphic transfer, mail transfer and
electronic transfer.
Bank guarantee.
Bill discounting commission.
Safe deposit lockers.
67
9813.4910
9813.5000
9813.6000
9813.7000
9813.8000
9813.8100
9813.9000
98.14
9814.1000
9814.2000
9814.3000
9814.4000
Classification
(1)
Safe vaults.
Issuance, processing and operation of credit and debit cards.
Commission and brokerage of foreign exchange dealings.
Automated Teller Machine operations, maintenance and
management.
Service provided as banker to an issue.
Others.
Service provided by a foreign exchange dealer or exchange
company
or money changer.
Services provided by architects, town planners, contractors,
property developers or promoters, interior decorators.
Architects or town planners.
Contractors of building (including water supply, gas supply and
sanitary works), roads and bridges, electrical and mechanical
works
including air conditioning), horticultural works, multi-discipline
works (including turn-key projects) and similar other works.
Property developers or promoters.
Landscape designers.
Description
(2)
9814.9000
Others.
98.15
9814.1000
9814.2000
9814.3000
9814.4000
9814.5000
9814.6000
9814.9000
9816.0000
Services provided by professionals and consultants etc.

Medical practitioners and consultants.
Legal practitioners and consultants.
Accountants and auditors.
Management consultants.
Technical, scientific and engineering consultants.
Software or IT based system development consultants.
Other consultants.
Services provided by pathological laboratories.
98.17
9817.1000
9817.2000
9817.3000
9817.4000
9817.9000
98.18
9818.1000
9818.2000
9818.3000
Services provided by medical diagnostic laboratories including

X-resect scan, M.R. Imaging etc.
Scientific laboratories.
Mechanical laboratories
Chemical laboratories
Electrical or electronic laboratories.
Other Such laboratories
Services provided by specialized agencies.
Security agencies.
Credit rating agencies.
Market research agencies.
68
9818.9000
Other such agencies.
98.19
9819.1000
9818.1100
9818.1200
9818.1300
9818.1400
9818.2000
9818.3000
9818.4000
9818.5000
9818.6000
9818.7000
9818.8000
9818.9000
9818.9100
9818.9200
9818.9300
9818.9400
9818.9500
9818.9090
Services provided by specified persons or businesses.

Stockbrokers.
Under writers.
Indenters.
Commission agents.
Packers.
Money exchangers.
Rent a Car.
Prize bond dealers.
Surveyors.
Designers.
Outdoor photographers.
Art painters.
Cable TV Operators.
Auctioneers.
Public relations services.
Management consultants.
Technical testing and analysis service.
Service provided by a registrar to an issue.
Others.
Classification
(1)
Description
(2)
98.20
9820.1000
9820.2000
9820.4000
9820.9000
Services provided by specialized workshops or undertakings.

Auto-workshops.
Workshops for industrial machinery construction and earthmoving machinery or other special purpose machinery etc.
Workshops for electric or electronic equipments or appliances etc.
including computer hardware.
Car washing or similar service stations.
Other workshops.
98.21
9821.1000
9820.2000
9820.3000
9820.4000
9820.5000
Services provided for specified purposes.

Healthcare center, gyms or physical fitness center etc.
Indoor sports and games center.
Baby care center.
Baby massage center.
Pedicure center.
98.22
9822.1000
9822.2000
9822.3000
Services provided for specified purposes.

Fumigation services
Maintenance or cleaning services.
Janitorial services.
9820.3000
69
9822.4000
9822.9000
Dredging or de-silting services.

Other similar services
9823.0000
9824.0000
9825.0000
9826.0000
Franchise services.
Construction services.
Consultancy services.
Management services including fund and asset management
services.
Market research agencies.
Program producers.
Brokerage (other than stock) and indenting services.
Race Clubs.
General insurance agents.
Exhibition or convention services.
Data Processing and provision of information, services of
engineers, handling and storage of goods.
Fashion designers.
9827.0000
9828.0000
9829.0000
9830.0000
9831.0000
9832.0000
9833.0000
9834.0000
70
Classification
(1)
Description
(2)
9835.0000
9836.0000
9837.0000
9838.0000
9839.0000
9840.0000
9841.0000
9842.0000
9843.0000
property.
9844.0000
9845.0000
9846.0000
9847.0000
9848.0000
9849.0000
9850.0000
9851.0000
9852.0000
9853.0000
9854.0000
9855.0000
9856.0000
9857.0000
9858.0000
9859.0000
9860.0000
9861.0000
9862.0000
9863.0000
9864.0000
9865.0000
9866.0000
cinemas.
9867.0000
9868.0000
Cable operators.
Internet cafe.
Pandal and shamiana services
Airport services.
Intellectual property services.
Forward contract services.
Packaging services.
Services provided in matters of hire.
Purchase or sale of moveable or immovable goods or
Property dealers and realtors.
Automobile dealers.
Dealers of second hand goods other than automobiles.
Cosmetic and plastic surgery.
Beauty parlor and beauty clinics.
HR consultants.
Corporate law consultants.
Tax consultants.
Human resources & personnel development services.
Coaching centers.
Vocational centers.
Actuarial services.
Training services.
Tracking services.
Security alarm services.
Human resource development.
Building maintenance and service provider.
Quality control services (ISO certification authority).
Services provided by motels, guest houses and farm houses.
Debt collection agencies.
Amusement parks.
Call centers.
Film and drama studios including mobile stage shows or
Entertainment services.
Services provided in respect of manufacturing or processing
on toll basis.
71
BALOCHISTAN SALES TAX ON SERVICES ACT, 2015
SECOND SCHEDULE
(Taxable Services)
[See section 3]
Part A
Tariff
Classification
Description
Rate of tax
(1)
(2)
(3)
98.12
Telecommunication services
19.5%
9812.1000
Telephone services
19.5%
9812.1100
Fixed line voice telephone service
19.5%
9812.1200
Wireless telephone
19.5%
9812.1210
Cellular telephone
19.5%
9812.1220
Wireless Local Loop telephone
19.5%
9812.1300
Video telephone
19.5%
9812.1400
Payphone cards
19.5%
9812.1500
Prepaid calling cards
19.5%
9812.1600
Voice mail service
19.5%
9812.1700
Messaging service
19.5%
9812.1710
Short Message service (SMS)
19.5%
9812.1720
Multimedia message serve (MMS)
19.5%
9812.1910
Shifting of telephone connection
19.5%
9812.1920
Installation of telephone extension
19.5%
9812.1930
Provision of telephone extension
19.5%
9812.1940
Changing of telephone connection
19.5%
9812.1950
Conversion of NWD connection to no NWD or vice

versa
19.5%
72
9812.1960
Cost of telephone set
19.5%
9812.1970
Restoration of telephone set
19.5%
9812.1990
Others
19.5%
9812.2000
Bandwidth services
19.5%
9812.2100
Copper line based
19.5%
9812.2200
Fiber-optic based
19.5%
9812.2300
Co-axial cable based
19.5%
9812.2400
Microwave based
19.5%
9812.2500
Satellite based
19.5%
9812.2900
Others
19.5%
9812.3000
Telegraph
19.5%
9812.4000
Telex
19.5%
9812-5000
Telefax
19.5%
9812.5010
Store and forward fax services
19.5%
9812.5090
Others
19.5%
9812.6000
Internet services
19.5%
9812.6100
Internet services including email services
19.5%
9812.6110
Dial-up internet services
19.5%
9812.6120
Broadband services for DSL connection
19.5%
9812.6121
Copper line based
19.5%
9812.6122
Fiber-optic based
19.5%
9812.6123
19.5%
9812.6124
Wireless based
19.5%
9812.6125
Satellite based
19.5%
73
9812.6129
9812.6130
9812.6140
Others
Internet/email/Data/SMS/MMS services on WLL
networks
Internet/email/Data/SMS/MMS services on cellular
mobile networks
19.5%
19.5%
19.5%
9812.6190
Others
19.5%
9812.6200
Data Communication Network Services (DCNS)
19.5%
9812.6210
Copper Line based
19.5%
9812.6220
19.5%
9812.6230
Fiber-optic based
19.5%
9812.6240
Wireless/Radio based
19.5%
9812.6250
Satellite based
19.5%
9812.6290
Others
19.5%
9812.6300
Value added data services
19.5%
9812.6310
Virtual private Network services (VPN)
19.5%
9812.6320
Digital Signature service
19.5%
9812.6390
Others
19.5%
9812.9000
Audiotext services
19.5%
9812.9100
Teletext services
19.5%
9812.9200
Trunk radio services
19.5%
9812.9300
Paging services
19.5%
9812.9400
Voice paging services
19.5%
9812.9410
Radio paging services
19.5%
9812.9490
Vehicle tracking services
19.5%
9812.9500
Burglar alarm services
19.5%
9812.9090
Others
19.5%
74
Part B
Tariff
Heading
Description
Rate of tax
(1)
(2)
(3)
98.01
Services provided or rendered by hotels, motels,

guest houses, restaurants, marriage halls, lawns,
clubs and caterers.
9801.1000
Services provided or rendered by hotels
15%
9801.2000
Services provided or rendered by restaurants
15%
9801.3000
Services provided or rendered by marriage halls,

lawns, pandal and shamiana
15%
9801.4000
Services provided or rendered by clubs
15%
9801.5000
9801.6000
Services provided or rendered by caterers, suppliers

of food and drinks
Ancillary services provided or rendered by hotels,
restaurants, marriage halls and lawns, clubs and
caterers
98.02
15%
15%
Advertisement
9802.1000
Advertisement on T.V.
15%
9802.2000
Advertisement on radio
15%
9802.3000
Advertisement on closed circuit T.V.
15%
9802.4000
Advertisement in newspaper and periodicals
15%
9802.5000
Advertisement on cable T.V. network
15%
9802.6000
Advertisement on poles
15%
9802.7000
Advertisement on billboards
15%
9802.9000
Others Advertisement including those on web or

internet
15%
9805.1000
Shipping agents
15%
75
9805.2000
Stevedores
15%
9805.2100
Ship management services
15%
9805.3000
Freight forwarding agents
15%
9805.4000
Customs agents
15%
9805.5100
Tour operators
15%
9805.6000
Recruiting agents
15%
9805.7000
Advertising agents
15%
9805.8000
Ship chandlers
15%
9805.9000
Share transfer agents
15%
9805.9100
Sponsorship services
15%
9805.9200
Business Support Services
15%
Services provided or rendered in the matter of

sale purchase or hire
9806.1000
Purchase or sale or hire of immovable property
15%
9806.2000
Property dealers
15%
9806.3000
Cars or automobile dealers
15%
9807.0000
Services provided or rendered by property

developers or promoters for
(a) Development of purchased or leased land
for conversion into residential or commercial
plots.
(b) Construction of residential or commercial
units.
15
9808.0000
Courier services
15%
9809.0000
Services provided or rendered by persons

engaged in contractual execution of work or
furnishing supplies
15%
76
9810.0000
9811.0000
98.13
9813.1000
Services provided or rendered for personal care

by beauty parlors, beauty clinics, slimming
clinics or centres and others
Services provided or rendered by laundries and
dry cleaners
Services provided or rendered by Banking
companies, Insurance companies, Cooperative
financing societies, modarabas, musharikas,
leasing companies, foreign exchange dealers,
non-banking financial institutions and other
persons dealing in any such services
Services provided or rendered in respect of
insurance to a policy holder by an insurer, including
a reinsurer
15%
15%
15%
15%
9813.1100
Goods insurance
15%
9813.1200
Fire insurance
15%
9813.1300
Theft insurance
15%
9813.1400
Marine insurance
15%
9813.1500
Life insurance
15%
9813.1600
Other insurance including reinsurance
15%
9813.3000
Services provided or rendered in respect of leasing
15%
9813.3010
Financial leasing
15%
9813.3020
Commodity or equipment leasing
15%
9813.3030
Hire purchase leasing
15%
9813.3900
9813.4000
9813.4100
Services provided or rendered in respect of

modaraba and musharika financing
Services provided or rendered by banking
companies in relation to:
Guarantee
15%
15%
15%
77
9813.4200
Brokerage
15%
9813.4300
Letter of credit
15%
9813.4400
Insurance of pay order and demand draft
15%
9813.4500
Bill of exchange
15%
9813.4600
Transfer of money including telegraphic transfer,

mail transfer and electronic transfer
15%
9813.4700
Bank guarantee
15%
9813.4800
Bill discounting commission
15%
9813.4900
Safe deposit lockers
15%
9813.4910
Safe vaults
15%
9813.4990
Other services not specified elsewhere
15%
9813.5000
9813.6000
9813.7000
9813.8000
9813.8100
9813.9000
Issuance, processing and operation of credit and

debit cards
Commission and brokerage of foreign exchange
dealings
Automated Teller Machine operations, maintenance
and management
Service provided as banker to an issue
Others, including the services provided or rendered
by non-banking, finance companies, modaraba and
musharika companies and other financial institutions
Service provided or rendered by a foreign exchange
dealer or exchange company or money changer
15%
15%
15%
15%
15%
15%
9814.1000
Architects or town planners
15%
9814.2000
Contractor of building (including water supply, gas

supply and sanitary works), electrical and
mechanical works (including air conditioning), multidisciplinary works (including turn-key projects) and
similar other works
15%
9814.3000
Property developers or promoters
15%
78
9814.9000
98.15
Interior decorators
15%
Services provided or rendered by professionals

and consultants, etc..
9815.2000
Legal practitioners and consultants
15%
9815.3000
Accountants and auditors
15%
9815.4000
Management consultants
15%
9815.5000
Technical, scientific and engineering consultants
15%
9815.6000
Software or
consultants
15%
9815.9000
Tax consultants
98.18
IT
based
system
development
15%
Services provided or rendered by specialized

agencies
9818.1000
Security agency
15%
9818.3000
Market research agency
15%
98.19
Services provided or rendered by specified

persons of businesses
9819.1000
Stockbrokers and commodity brokers
15%
9819.2000
Money exchanger
15%
9819.3000
Rent a car and automobile rental service
15%
9819.5000
Surveyors
15%
9819.7000
Outdoor photographers and videographers
15%
9819.9000
Cable TV operators
15%
9819.9300
Management consultants
15%
9819.9400
Technical testing and analysis service
15%
79
9819.9500
9819.9090
98.20
9820.1000
9820.2000
9820.3000
Services provided or rendered by a registrar to an

issue
Services provided or rendered by port operators,
airport operators, airport ground service providers
and terminal operators
Service provided or rendered by specialized
Workshops or undertakings.
Auto workshops, including authorized service
stations
Workshops for industrial machinery, constructions
and earth-moving machinery or other special
purpose machinery, etc.
Workshop for electric or electronic equipment or
appliances, etc, including computer hardware
15%
15%
15%
15%
15%
9820.4000
Car or automobile washing or similar service station
98.21
Services provided or rendered in specified fields
9821.1000
Health care centre, gyms or physical fitness centre,

etc
15%
9821.4000
Body massage centre
15%
9821.5000
Pedicure centre
15%
98.22
15%
Services provided or rendered for specified

purposes
9822.1000
Fumigation services
15%
9822.2000
Maintenance or cleaning services
15%
9822.3000
Janitorial services
15%
9823.0000
Franchise services
15%
9824.0000
Construction services
15%
Management services including fund and assets

management services
15%
Airport services
15%
80
Tracking services
15%
Security alarm services
15%
Services provided by motels and guest houses
15%
Event management services including the services

by event photographers, event videographer and
persons related to such event management
15%
Exhibition services
15%
9828.0000
Public bonded warehouses
15%
9829.0000
Labour and manpower supply services
15%
9830.0000
Services provided in the matter of manufacturing or

processing for other on toll basis
Race Clubs:
(a) Service of entry/admission
9831.0000
(b) Other services

9832.0000
9833.0000
Services provided or rendered by program producers

and production houses
Services provided or rendered by corporate law
consultants
15%
(a) Rs.200 per
entry ticket
or
entry
pass of the
person
visiting the
race event.
(b) 15%
15%
15%
9834.0000
Services provided or rendered by fashion designers
15%
9835.0000
Services provided or rendered by call centres
15%
9836.0000
Services provided or rendered by persons engaged

in inter-city transportation or carriage of goods by
road or through pipeline or conduit
15%
*********
81

Sales Tax ACT 2015

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Sales Tax ACT 2015

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BALOCHISTAN PROVINCIAL ASSEMBLY SECRETARIAT

THE BALOCHISTAN SALES TAX ON SERVICES BILL NO.16 OF 2015

to provide for the levy of a tax on services provided,

Short Title, Extent and

1. (1) This Act shall be called the Balochistan Sales Tax

2. In this Act unless there is anything repugnant in the

(4) Assistant Commissioner means a person appointed

them is such that one may reasonably be

(a) and subject to paragraph (c), the following

interposed persons:a. fifty percent or more of the voting power

(b) a body corporate formed by or under any law;

or any other society established or constituted by

from the tax under section 12;

or partially through any other person such as an

Balochistan Revenue Authority Act;

obligations imposed under the Act or rules or

(47) Value of a taxable service shall have the meaning

which a particular service or class of service shall be

4. (1) Where a person is providing taxable services in

Governments on the implementation of reformed

5. (1) The Government may, by notification in the

6. (1) An economic activity means any activity carried

7. (1) The value of a taxable service is the consideration

(7) Notwithstanding anything in sub-sections (1) to (6),

Provision of Services Over a

9. (1) Where a service is provided over a period of time

and payment for the same is made on a periodic basis,

Scope of Tax and Allied

10. (1) Subject to the provisions of this Act and the

under the Act.

12. (1) Notwithstanding the provisions of sections 3 and

(d) a class of persons, any area or areas of

Balochistan from the whole or any part of the

13. If there is a change in the rate of tax, the taxable

Special Procedure and Tax

14. (1) Notwithstanding anything contained in this Act,

15. (1) The Government may, in accordance with article

16. (1) The Authority may, subject to such conditions

Time, Manner and Mode of

18. (1) The tax in respect of a taxable service provided

Joint and Several Liability

19. (1) Where a registered person receiving a taxable

Sales of Taxable Activity or

20. (1) Where the ownership of any business providing

to the Commissioner within one month of the

21. The tax liability of a deceased registered person

22. (1) Where a registered person is declared bankrupt,

Liability for Payment of Tax

23. Where any private company or business enterprise

24. (1) Where on the basis of any information acquired

which the assessment relates specifying the ground on

place of business in Balochistan; or

restrictions as the Authority may, by notification in the

26. (1) A person who carries on an economic activity but

(ii) complied with his obligations under

27. (1) If the Authority is satisfied that a person who is

28. (1) Subject to sub-section (3), the Authority may

29. (1) The Authority may de-register a registered

Issuance of Tax Invoices

30. (1) A registered person providing a taxable service

of the service recipient;

(2) The Authority may, by notification in the official

31. (1) A registered person providing taxable service

from such accounts.